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Sensex (57912) / Nifty (17393)

Wednesday’s respite was followed by a decent gap up opening yesterday on the back of positive cues from the most of the global peers. As the day progressed, the overall participation from some of the missing heavyweight pockets like, IT, Auto and Banking increased to a great extent. As a result, we witnessed a good sustained upward move through out the day to eventually conclude the penultimate weekly expiry around 17400 by adding another 1.50% to the bulls’ kitty

Markets had a fierce sell off during the last hour of Tuesday and since it looked a bit abnormal one, we refrained from changing our bullish stance. With yesterday’s spectacular move, this view is clearly validated and the way we closed yesterday around the highest point of the day, augurs well for the bulls. For the coming session, 17450 is the immediate level to watch out for and the moment we surpass this, Nifty would continue its march towards 17600 – 17700. On the flipside, 17300 followed by 17200 are likely to provide immediate cushion. Traders are advised to use declines to buy into and should continue to focus on thematic moves.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (36816)

Bank Nifty as well started with a gap up opening well above Wednesday's high. Subsequently, a dip was seen in the first hour that immediately got bought into, and follow-up buying thereafter throughout the session resulted in a close with healthy gains of 1.38% at 36816.

Despite recent sluggishness by the bank index it has managed to hold on to its 38.2% retracement of the recent rally seen from the March swing low. The way it has bounced back in yesterday's session definitely augurs well for the bulls and we sense the bank index resuming the northward journey. However, with still some overhead resistance seen traders should take one step at a time. As of now, we sense the bank index re-testing the levels of 37100 - 37400, and in case of any dip towards 36500 – 36400 it is likely to act as buying opportunity. With the ongoing result season, we remain with our stance of having stock-specific trades that are providing outperforming opportunities.

Exhibit 2: Nifty Bank Daily Chart

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