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Sensex (52154) / Nifty (15315)

After a brief pause last week, our markets resumed their upward momentum on the back of global optimism and encouraging macro numbers. Barring initial small decline, the index slowly and gradually kept marching higher to add another percent to the bull’s kitty and importantly marking a fresh record high beyond 15300.

Undoubtedly, yesterday’s move was mainly propelled by the financial space as we can see top seven contributors in Nifty yesterday, are from this space only. Last week, we witnessed some breather in the market after a marathon rally post Union budget.

Yesterday, the momentum was once again provided by the financial stocks and hence we saw only BANKNIFTY extended the gains throughout the day; whereas some of the other heavyweights spaces, went sideways. Now, although the overall trend has been strongly bullish and markets are not willing to correct at all, it would be very difficult to give bigger upside levels from hereon.

We can observe a cluster of resistance in the zone of 15380 – 15500, which is the 161% ‘Golden Ratio’ of the entire fall from Jan’20 highs to March’20 lows. Hence, we advise momentum traders to keep booking profits in the ongoing rally and stay light on positions. On the flipside, 15250 – 15150 is to be seen as immediate supports. The major support is at 15000 and any decisive move below this level would lead to some decent profit booking in the market.

Yes, we agree to the fact that the bulls are completely on rampage but we do not want to get complacent at all. One needs to be constantly keeping a tab on all important levels and should avoid aggressive bets in the market.

Nifty Daily Chart

Nifty Bank Outlook - (37306)

Bank Nifty as well started with a gap up opening and while some consolidation was seen in the broader markets; the bank nifty continued to move higher throughout the session to end with gains of 3.32% tad above 37300.

On Friday, we witnessed some outperformance from the banking space, and the follow-up move in yesterday's session resulted Bank Nifty breaking above the recent consolidation phase above 36600. Technically, the bias remains positive and momentum is strongly gripped by the bulls however with oscillators in the overbought zone we advise traders not to get complacent and avoid aggressive bets.

The real action is likely to remain within the stock-specific trades and one should continue with it having a proper exit setup. As far as levels are concerned, previous resistance around 36600 is likely to act as immediate support whereas the 37850 - 38000 is likely to act as resistance.

Nifty Bank Daily Chart

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