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Sensex (61294) / Nifty (18233)

We had a soft opening yesterday as indicated by the SGX Nifty early in the morning. Similar to previous sessions, the buying emerged at lower levels; but the intensity was clearly lacking. Nevertheless, Nifty managed to claw back above 18200 to finally confirm a daily close above it after nearly 6-7 sessions.

As far as direction is concerned, undoubtedly, we are in a bullish phase; but market is clearly struggling to surpass the strong hurdles around 18250 - 18300 due to not so convincing moves in heavyweight counters. Hopefully, if global market supports, we would go past it soon. Until then, the immediate trading range can be seen around 18000 - 18300. Within this range, the buy on decline strategy continues with thematic moves unfolding one after another.

Nifty Bank Outlook (43425)

Bank Nifty started on a flat note and then prices remained within a range with an undertone maintaining bullish. The bank index eventually ended with gains of around half a percent at 43425.

Since the last few sessions, prices are facing resistance around the 43400 - 43500 range and yesterday prices ended a tad around the same. If we observe the hourly charts, the said price formation resembles an 'Inverse Head N Shoulder' pattern. Sustained trading beyond 43500 would confirm the breakout and in that scenario, a fresh leg of upside can open towards the all-time high levels. Considering the price sustaining above 61.8% retracement of the recent fall (44151 – 41569) and the buy signal in RSI smoothened we expect the breakout to trigger very soon. Traders are hence advised to avoid contra bets and maintain positive bias. As far as levels are concerned, immediate resistance is seen around 43680 - 44000 levels whereas, on the flip side, 43150 - 43000 is the immediate support zone.

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