Sensex (32021) / Nifty (9886)
During last week, the Nifty index gave a breakout above its resistance of 9720 and rallied significantly to end the week tad below the 9900 mark.
At present, we are undergoing a typical phase in the market wherein you are stuck with your view and movement seen in the market does not give any comfort to ride the tide. Some observations with a slightly broader view are still holding us back. Hence, we need to keep our rigidity intact and let go these extended moves as we generally see such kind of euphoric moves in the latter stage of any rally. As far as index view is concerned, we continue to remain cautious on the market and would advise staying light in the market (index specific longs should be booked). However having said that, one should not be ignoring the kind of spectacular trading opportunities individual stocks are offering.
On daily chart, we can see yet another candlestick pattern which resembles a ‘Hanging Man’ pattern precisely at 127% retracement of the previous up move from 9448.75. Going ahead, 9900 – 9920 would remain to be the levels to watch out for in the upward direction; whereas, on the lower side, 9845 – 9778 would be seen as immediate support levels.
Nifty Bank Outlook - (23938)
In Friday's trading session, the Nifty Bank index opened on a positive note and corrected lower during the session. However, the Thursday's gap area in the index acted as a support and the index recovered the losses in last hour of the day to end the session tad below day's high. This has led to the formation of a 'Dragonfly Doji pattern' on the daily chart. Thus, in near term, Friday's low of 23755 will be a crucial support for the Nifty Bank index. For short term traders, we continue with our advice to focus on stock specific moves and trade with proper risk management. The intraday supports for the Nifty Bank index are placed around 23820 and 23755 whereas resistances are seen around 24015 and 24140.
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