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Sensex (60115) / Nifty (17914)

The opening yesterday morning was on a muted note but disappointing set of numbers from TCS had already dented the sentiments within this heavyweight space. This had a rub off effect on other major pockets as well, which resulted in a massive selling pressure right from the word go. As the day progressed, the selling augmented in RELIANCE and even in most of the banking counters. As a result of this, we pared down all Monday’s gains and Nifty is now back to 17900 by shedding slightly over a percent from previous close.

The way our markets closed on Monday; we honestly did not expect this kind of hammering immediately the very next day. Globally, there was no major trigger and hence, we have corrected on our own. We are back below 18000 now and closer to the sacrosanct support zone of 17800 – 17700. It would be a litmus test for this sheet anchor as market is making its third attempt to sneak below it. Mostly, third attempt in short run becomes successful; but we certainly do not wish to repeat this symmetry. This will trigger a next leg of the corrective move, which we are not expecting as of now. Let’s see how things pan out and hopefully, global market provides some aid in a day or two.

Nifty Bank Outlook (42015)

Bank Nifty started on a mild positive note however right from the word go it started to slip lower and remained under pressure throughout the session to erase Monday's gains. Bank Nifty ended tad above 42000 with a loss of 1.33%.

The bounce back seen on Monday was short-lived as there was no follow-up buying yesterday and the resistance levels seem to be shifted lower towards 42700 - 42800 levels. The said level coincides with 50 Day Simple moving average and the last three sessions' high. Hence if bulls have to make a comeback, they need to clear this hurdle; till then any bounce may face selling pressure. On the flip side, December's swing low coinciding with 89EMA around 41500 would be closely watched as a break below the same can trigger further weakness in the near term. Going ahead, we may continue to see choppy swings on both sides and hence one needs to be very selective and avoid aggressive bets.

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