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Sensex (60546) / Nifty (18069)

Overall the global cues were a bit favourable in the morning and hence after a long break, our markets opened with a decent upside gap to test 18000. However within few minutes of trade, all these gains just disappeared and in fact, we went on to slide below 17850. However market was not done with its twists and turns as we saw strong buying interest at lower levels to pull the market higher. The positive momentum gained some pace post the mid-session to surpass the morning high. Eventually, Nifty ended the session with more than eight tenths of a percent gains.

Market witnessed a complete roller coaster yesterday as the volatility was at its best. Fortunately it ended in favour of the bulls as we managed to reclaim the 18000 and ended the session almost at the highest point of the day. The only pocket that kept sulking yesterday was the banking space and the sole culprit there was the INDUSIND BANK as it plunged more than 10% on the back of some negative news flow. Now are we completely out of the woods after yesterday’s move? the answer is not yet, because if we have to regain any strength, we need to surpass the sturdy wall of 18100 – 18200. Till then one still needs to avoid aggressive longs. On the flipside, 18000 followed by 17850 are to be seen as immediate supports.

The broader market did extremely well yesterday and throughout the day (especially in the latter half), some of the individual stocks gave excellent moves. Hence, traders can still capitalise on such potential bets; but need to follow strict money management.

Nifty Daily Chart

Nifty Bank Outlook - (39438)

Bank Nifty as well started on a positive note however right from the word go it slipped lower below the 39000 mark. The major reason for the fall was Indusind Bank that ended with a cut of more than 10%. In the penultimate hours, some bounce was seen in the bank index to eventually end with a loss of 0.345 at 39438.

The Indusind Bank was the major culprit behind yesterday’s underperformance in Bank Nifty as the other front line counters didn’t reflect the same and in fact some of the stocks from the PSU banking basket witnessed a strong outperformance. Going ahead the followup move in banking space would be crucial as it is likely to set the next path for the directional move in the broader market. As far as levels are concerned 39000 followed by 38400 is key support zone whereas on the higher side, 39750 and 40200 is stiff resistance zone. Traders are advised to focus on stock specific trades as they continue to give opportunities on both sides of trend.

Nifty Bank Daily Chart

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