IGI Logo

Sensex (59246) / Nifty (17666)

The global cues yesterday morning were a bit mix and hence SGX Nifty was indicating a sluggish start of the week. Despite this, we began the session on a positive note and then continued its northward move in the initial hour itself. After surpassing the 17650 mark, the index slipped into a consolidation mode. During the remaining part of the session, we witnessed a slender range with undertone being strongly bullish. Eventually, the Nifty concluded with slightly over seven tenths of a percent gains

Our domestic markets are clearly shrugging off most of the unfavorable global developments, which is a sign of inherent strength. Yesterday, although there was not much follow up action seen post the initial up move, the stock specific action kept market participants on their toes. Now, if we take a glance at the daily time frame chart, we can see index reaching the crucial trend line resistance level of 17700. A small push from the global markets would certainly provide the much needed impetus to the breakout from recent congestion phase. After this, we will not be surprised to see index hastening towards 17850 and then even towards the psychological mark of 18000. On the flipside, 17540 – 17460 should now provide some cushion on any small intraday declines. Apart from this, the banking space continues to lead from the front, which is a sign of healthy move.

We advise traders to keep focusing on individual stocks; because some of the themes from the broader market are gearing up for strong move in the near term.

Nifty Bank Outlook (39806)

Bank Nifty started on a flat note, and this was followed by strong buying during the first hour. However, there was no major traction after that, and the bank index consolidated in a range with a positive bias throughout the session to eventually end with gains of around a percent tad above the 39800 mark.

The bank index continues to be an outperformer and by breaking above the 39800 levels it has marked a fresh new calendar high. We are now witnessing a multi-month bullish breakout and we expect the bank index to lead the next bull run. In such a scenario, any dips should be taken as a buying opportunity. As far as levels are concerned, immediate support is seen around 39650 - 39400 whereas immediate upside levels can be expected at 40000 - 40180 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer