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Sensex (50782) / Nifty (14982)

We had a flat to positive start yesterday and despite global cues were unfavourable in the morning, our markets managed to extend gains towards 14800 in the initial hour. However, all of a sudden, the trading halted on NSE at 11.40 am due to some technical snag. It was very unusual and things worsened when it lasted for few hours without any clear intimation on further proceedings. This created havoc among the traders’ fraternity because everyone was clueless about their outstanding intraday positions. Fortunately, the trading resumed around 3.45 pm as an exceptional case for a short period. Although it almost opened around the same levels, we witnessed a complete gush in the second half of the truncated session. Before anyone could realise, Nifty just hastened towards the 15000 mark.

In last twelve months, we have already seen lot of unprecedented things and yesterday’s session certainly can be added to this tally. Honestly speaking, yesterday’s late surge has completely surprised us and has dented our recent cautious stance a bit. Let see how things pan out in the coming session. If Nifty manages to surpass 15080 – 15220, we may see Nifty resuming its higher degree uptrend in the following days. On the flipside, a failure to do so will lead to retesting of 14900 – 14800 levels. We would like to stay neutral while stepping into the important monthly expiry session and would focus on further proceedings to gauge the next action.

Nifty Daily Chart

Nifty Bank Outlook - (36452)

The bank nifty aswell started on a positive note and crept higher during the first half however post the mid-break due to technical glitch at NSE the bank nifty again started on a positive note and then witnessed a sharp spurt during the last hour to eventually end with gains of 3.80% at 36452.

In our last two outlook's we had clearly mentioned that the bank index is on the support of 20SMA i.e. around 35000 and with yesterday's upmove the prices have now bounced from the support to engulf the last two sessions candle. Now the move today’s session i.e. F&O expiry will be crucial to understand whether the move was genuine or misleading due to the technical glitch. For today's session we sense, the bank nifty will have to remain with its yesterday’s positive structure to resume its recent uptrend however in case the bank nifty slips below 36000 then one can say that the correction can continue. On the higher side, 36660 and 37100 will be seen as immediate resistance. Volatility is likely to increase and hence traders are advised to avoid aggressive bets and to have a proper exit setup to existing trades.

Nifty Bank Daily Chart

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