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Sensex (48832) / Nifty (14618)

During the last week, we had a pathetic start on Monday as Nifty surprisingly opened with a massive cut of more than 200 points as indicated by the SGX Nifty. This was mainly on the back of mounting concerns over the COVID-19 cases on the domestic front. Since it weighed down heavily on the financial space, the knock turned out to be a brutal one. In this process, the Nifty went on to tumble over 500 points to test the sub-14300 territory. Things looked extremely scary at the close on the opening day; but fortunately there was no follow through seen to it. In fact, throughout the remaining part of the week, we managed to recover fair bit of ground to trim major portion of losses.

Since last couple of weeks, market was trapped in a small range where it neither had strength to stay beyond 14900 nor it was letting it slide below 14500. Due to Monday’s sharp selloff, Nifty breached this range in the downward direction and the major culprit of this was clearly the entire financial basket. Although, Nifty didn’t violate major support of 14200, the BANKNIFTY finally slipped below its cluster of support placed at 32400 – 32200. Hence, till the time we do not see banking index crossing 32500 – 33000 levels, we are certainly not out of the woods yet. As far as Nifty is concerned, 14700 – 14850 remains to be a sturdy wall and surpassing it would really be a daunting task for the bulls. On the downside, 14500 – 14350 – 14250 are the levels to watch out for.

Nifty Daily Chart

Nifty Bank Outlook - (31977)

On Friday, Bank Nifty Index started on a flat note and remained in a range throughout the session. During the last hour, it was ticking days low to eventually end around the lowest point with a loss of 0.42% at 31977.

During the last week, we witnessed a huge gap down opening on Monday and further selloff on the same day to test the vicinity of 30500 however post that the bank nifty witnessed a gradual bounce in the remaining part of the week to recover major lost ground. The bank nifty is now retesting the breakdown levels that were previously acting as strong support. The said breakdown levels coincide with key moving averages like 20EMA and 89EMA and hence as long we don't cross 32500 - 33000 we remain cautious and advise to avoid undue risk. On the flip side, 31400 - 31000 is the immediate support zone.

Nifty Bank Daily Chart

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