IGI Logo

Sensex (58962) / Nifty (17304)

Our market started on a flat note tracking the positive global cues and inched higher at the opening bell. But soon after, a sell-off got triggered that gradually dragged the index below Monday’s low, signifying the strength of the bears at higher grounds. With the intense day of sell-off, Nifty continued the selling streak for the eighth day in a row and settled a tad above the 17300 level with another cut of 0.51 percent.

Technically speaking, the benchmark index kept flirting around the 200 SMA throughout the session but eventually settled tad below the same. Price-wise it does not augur well for the bulls; but we are still a bit skeptical and do not want to get carried away by the close. The main reason behind this is a ‘Positive Divergence’ in the daily ‘RSI-Smoothened’ oscillator. When such condition takes place, we may see deception in price breakdown. Also, the banking space is showing some resilience and till the time, banking does not give up, the hope of recovery remains intact. Hence, we advise traders avoid shorting and let us see whether follow through selling happens or not. As far as levels are concerned, 17200 is to be seen as immediate support; whereas on the flipside, 17400 followed by 17500 is the crucial hurdle for the benchmark index.

As we advance, one needs to keep close track of the heavyweight’s performance as they have contributed to the selloff. Besides this, global development should also be tracked closely, and in the meantime, we would advocate traders to avoid aggressive bets and focus on stock-specific actions. Simultaneously, Investors can start picking good-quality propositions in a staggered manner from a short to mediumterm perspective.

Nifty Bank Outlook (40269)

The banking index started the session on a flat note marginally in the green. However, during the first half, previous day’s strong performing space lacked follow up buying and hence, we saw some tentativeness at higher levels. Although, it corrected slightly, there was no damage to the bullishness it displayed on Monday. In fact, towards the latter part of the day, we once again saw a good buying emerging in some of the banking counters. Eventually, the BANKNIFTY managed to recover fair bit of ground to conclude with negligible loss. The BANKNIFTY maintains its firmness and unlike Nifty, it has convincingly managed to defend its recent swing low (on multiple occasions) of 39700 on a closing basis. Now, if overall sentiments are to be improved in the market, the banking plays a vital role here. A small aid from global peers can certainly provide the much-needed impetus to this space and then we may see it lifting Nifty higher from its multi-month lows. As far as levels are concerned, 40000 – 39700 is likely to be seen as sacrosanct zone; whereas on the flipside, a move beyond 40400 may result in breaking the shackles to then march towards 40800 – 41000 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer