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Sensex (62835) / Nifty (18701)

The Indian equity market started the week on a mild note despite positive global developments over the weekend. The benchmark index slipped instantly post the opening bell, but the dip augured well for the bulls as they retaliated from the lows and made a modest recovery in the index. We have witnessed some tentativeness in the index as the follow-up buying was missing in major heavyweights, and the index made a subdued move throughout the day. Post the hustles, Nifty concluded the day on a flat note with a mere gain of 0.03 percent and settled a tad above 18700 levels.

On the technical perspective, the crucial support of the 18600 was firmly safeguarded, implying the resilience of the technical support. However, some tentativeness was evident on the higher grounds, but there has been no significant change in the chart structure as such. The strategy of buy on the decline and sell on rise fits perfectly in the current market scenario. As far as levels are concerned, the 18600-18500 is likely to act as the sacrosanct support zone, and on the higher end, the immediate hurdle could be seen around 18800-18850, followed by the psychological mark of 19000.

Nifty Bank Outlook (43333)

The banking index had a quiet start in tandem with benchmark. In the initial hour, we observed some sluggish moves to enter sub43000 terrain. However, it was merely a formality as we witnessed a good buying interest at lower levels to push the BANKNIFTY back inside the green zone. In fact, as the day progressed, the banking index took the charge as it single-handedly kept the benchmark index in the hunt. It managed to pull the Nifty above the 18700 mark when other heavyweight pockets were sulking to some extent. Eventually, the BANKNIFTY ended the session with nearly half a percent gains.

We have been witnessing a range bound action in BANKNIFTY since last eight trading sessions and yesterday too, the recovery took place precisely after nearing the lower band. Now, since yesterday it has managed to close around day’s high, it would be interesting to see whether it continue to move northwards or not. Beyond 43500, once again banking index resumes its journey in the uncharted territory. It we have to make any immediate projection, 43800 – 44000 would be the next levels to watch out for. On the flipside, the support base remains in the vicinity of 43200 – 43000.

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