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Sensex (58834) / Nifty (17559)

Similar to the previous session, Nifty started on a positive note on Friday, however, there was a lack of follow-up buying at higher levels, and Nifty gradually came lower to erase a major part of the opening gains. Nifty eventually ended with gains of 0.21% at 17559.

The Nifty has now closed precisely around the mid-point of immediate trading range of 17750 – 17350 and since, markets has lost its sheen, it would be difficult to predict the immediate path of action amid some global nervousness. In our sense, one should avoid trading aggressively within the range and till the time, we remain above 17350, there is no reason to worry for. Only a breakdown below this sacrosanct support would extend the corrective phase towards the major support zone of 17100 – 17000. Before 17350, we can see immediate support around 17450. On the flipside, 17700 – 17750 are the levels to watch out for. If bulls have to strengthen their stance, Nifty needs to surpass the higher boundary with some authority. Till then it’s better to take one step at a time and ideally the positioning must be on a lighter side.

Nifty Bank Outlook (38987)

On Friday, Bank Nifty as well started on a positive note however there was tentativeness at higher levels, and with gradual declines, it erased most part of the morning gains. Nifty bank eventually ended a flat tad below 39000 levels.

It has been an action-packed week and now it seems the bank index has entered a consolidation phase where dips are getting bought whereas any up moves are getting sold into. In such a scenario finding the key levels and trading the same becomes very vital. It seems, that 38800 followed by 38550 is immediate support whereas the sacrosanct support remains at Tuesday's low at 37950. On the other hand, 39400 - 39750 seems to be the immediate resistance zone. Even the action outside index is a bag of a mixed picture like on Friday we saw outperformance in Kotak Bank and Bank Baroda whereas weakness was seen in Bandhan Bank and IndusInd Bank. Hence during this consolidation phase, it seems opportunities can be seen on both sides of the trend, but one needs to be very selective.

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