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Sensex (53416) / Nifty (15939)

Despite SGX Nifty was indicating a sluggish start, our benchmark index opened on a positive note by shrugging off nervousness from obscure US markets. In the initial hour, it extended its gains towards 16050 but once again some selling pressure at higher levels restricted the up move. In fact, due to aggravation in some of the heavyweights, the Nifty not only pare down gains but also went on to retest the 15850 mark. Eventually, a modest recovery in the final hour of trade, pulled Nifty beyond 15900 to conclude the weekly expiry on a muted note.

It was almost a replica of Wednesday’s session where our key indices struggled to maintain the opening lead and concluded around key supports. Although, the global environment is still not conducive; our markets are not wiling to give up as they attract some buyers at lower levels. Technically speaking, we can see key support zone of 15950 – 15900 getting defended successfully on a closing basis. Hence, the bias still remains positive and one should use this as a buying opportunity till the time we do not sneak below it on a sustainable basis. On the flipside, there are lot of headwinds that are not wiling markets to stay at higher levels.

For the coming session, 16040 – 16070 are to be seen as immediate resistances and only a move beyond this, would trigger some broad based buying in the market. At this juncture, it’s advisable to stay light and identifying the apt themes remain a key for momentum traders. Sectorally, banking and IT again started sulking and hence, there participation is must in order to lift the overall sentiments in traders’ fraternity.

Nifty Bank Outlook - (34651)

On the weekly expiry day, Bank Nifty started on a mild negative note and during the first hour, it showed signs of positive traction. This up move was however short-lived as there was no follow-up buying beyond the 35000 mark and the rub-off effect from the previous session dragged the index lower. As the day processed there was gradual weakness throughout the session and eventually the bank index ended with a cut of around half a percent at 34651.

With the profit booking seen in the last few sessions, the bank index has slipped to key support levels that coincide with a bullish gap and key 50EMA. This mentioned level around 34300 - 34400 is a sacrosanct point and if the bulls have to resume the up move then this is the ideal point to bounce back, however, If the mentioned levels are broken then one can expect further profit booking in the near term. On the flip side, 35000 is the key level to watch out for that coincides with 89EMA. Yesterday few private banks showed strength whereas the PSU banks showed weakness; such trading opportunities may continue to occur on both sides of the trend and traders should ideally focus on the same.

Nifty Bank Daily Chart

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