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Sensex (56125) / Nifty (16705)

During the last week, Nifty started on a positive note as the global markets recovered which led to some positive sentiment. Market participants looked a bit perplexed on Monday, but the broader markets saw buying interest on Tuesday which led to an upmove in the index to march towards new highs again. In next couple of sessions, Nifty consolidated within a range till expiry and it again resumed the momentum on the last day to end the week above 16700.

Inspite of the volatility in the midcap and smallcap space, the index has managed to hold on and has continued to register new highs. However, the broader markets got its mojo back as many stocks witnessed buying interest from their respective supports. The index continues to be in an uptrend and thus one should continue to trade with a positive bias and avoid taking any contra trades until any reversal seen. The only concern that we have been highlighting is the banking index which has shown a relative underperformance for so long. But, this index is still in a consolidation phase and has not breached it's important supports. Hence, there's a good probability of some buying interest emerging in this sector which would then lead to further support to the benchmark.

The immediate supports for Nifty are placed around 16600 and 16500 while the levels to watch on upside will be 16800 and then 17000 mark. Recently we have seen that when everything looks hunky dory, we see some volatile stock specific moves. Also how the global markets shape up in the near term due to events can have an impact on our markets. Hence, one should keep track on the global developments and also book timely profits in trading positions.

Nifty Daily Chart

Nifty Bank Outlook - (35628)

On Friday, we started the proceeding slightly lower and we saw a dip towards 35400. In the subsequent hour, smart recovery was seen to almost touch 35700 and then the banking index grinded in the narrow range to conclude the day tad above 35600. Bank Nifty concluded the week with the gains of 1.70%.

The benchmark index registered fresh record highs last week but the BankNifty continues to disappoint the market participants. However, the kind of recovery we saw on Tuesday was certainly a sigh of relief and until we manage to sustain above 35000 mark on the closing basis the overall biasness remains positive. Hopefully September series brings back the momentum in this space which shall fuel the rally seen in the benchmark index. As far as levels are concerned, 35300-35400 is an immediate demand zone now and the sturdy

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