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Published on 22/07/2021 9:57:59 AM | Source: Angel Broking Ltd

The index corrected and even sneaked below the 15600 mark around noon - Angel Broking

Posted in Market Outlook| #Market Outlook #Angel Broking Ltd

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Sensex (52199) / Nifty (15632)

Post Monday’s correction, we started another session on a weak note due to continued negative cues from the global markets. The index corrected and even sneaked below the 15600 mark around noon. Later, it recovered from the lows but clearly the strength was missing to lift the benchmark much and ultimately Nifty ended the day around 15630, with a loss of about threefourth of a percent.

The global markets have clearly dented the bullish sentiment and thus, we continued with the nervousness for the second session of the week. Infact, the broader markets also felt the heat and thus profit booking was seen there too. Although we are in an uptrend, if we look at recent data then it is seen that the index has not moved much since the start of June and still, we continue to be in a corrective phase within an uptrend. Given the correction in the last couple sessions is more due to the effect of overseas markets, the short term trend will depend a lot on how they move in the next few days.

The immediate supports for the Nifty are placed around 15550 and 15450 whereas 15730-15750 is seen as immediate resistance. Traders are advised to avoid aggressive positions and look for stock specific trading opportunities.

Nifty Daily Chart

 

Nifty Bank Outlook - (34415)

The global markets continued to grind and this is clearly weighing down heavily on our markets. For the second straight day, the BANKNIFTY opened lower in tandem with our benchmark. The weakness extended in the first half to test the 34400 mark. Fortunately, the fall arrested for the day around this point and banking index even made a valiant attempt to rebound. But again, this tiny effort got sold into towards the end to close almost at the lowest point of the day.

Friday’s close indicated a move beyond 36000 but due to global nervousness, the BANKNIFTY is off nearly 4% from last week’s close. It is now approaching a very strong as well as the crucial support zone of 34200 – 33900. In case, we see the index first reaching this area on the weekly expiry day, one can take a punt by buying At-the-Money (ATM) call options after entering this zone. If any recovery takes place, we can expect banking index reclaiming 34500 – 34700. However, the real strength is possible only after surpassing 34900 – 35100. Till then intraday rebounds are likely to get sold into. Since the correction is mainly triggered by the global peers, the recovery mode will also be led by them only. Hence, it’s very important to track the global developments for next few days.

Nifty Bank Daily Chart



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