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Sensex (54885) / Nifty (16523)

Despite SGX was indicating a sluggish start, our markets opened marginally in the green around 16600. This was followed by some consolidation in the first half; but as we stepped into the latter one, some tentativeness was visible across the broader market. As a result, the Nifty sneaked below 16500 and even went on to slide slightly below 16450 during the penultimate hour. Fortunately, the banking space came for a rescue and lifted the market to eventually reclaim the 16500 on a closing basis

Since last couple of sessions, the benchmark index has been struggling around 16700 and yesterday it did not even reach there. After marking a high of 16649.20, the Nifty once again felt some heat and in the process, corrected in the vicinity of 16500 – 16400. Since, this support zone holds key as it coincides with recent breakout point as well as ’20-day EMA’, some buying was visible in last 30 minutes of trade. The global uncertainty is still looming over and hence, we are not seeing convincing moves after reaching the key resistance levels of 16700. If there is no aberration on the global front, we continue to remain sanguine as long as 16400 – 16370 is defended successfully. Until then one should use these decline to go long. On the upside, the resistance remains at 16600 – 16700; but it’s a matter of time, we would see Nifty surpassing these levels and then heading towards 16850 – 16950 in coming sessions.

Nifty Daily Chart

Nifty Bank Outlook - (35621)

Bank Nifty started on a negative note however from there it showed signs of performance as it quickly moved to mark an intraday high of 35768. Subsequently, as the broader markets felt the heat during the mid-session the bank index as well slipped lower to test morning lows however once again a sudden gush of buying in the last half an hour helped the bank nifty to end with gains of 0.38% at 35621.

Last two sessions, we are witnessing matching lows around the 35300 levels that coincide with a bullish gap left on 27th May. The way some of the banking counters rallied during the last half an hour definitely augurs well for the bulls and if there's no aberration on the global front then one can expect the weekly expiry to end on a strong note. As far as levels are concerned, 36000 - 36200 remains an immediate resistance zone whereas on the flip side 35300 - 35000 is the immediate support zone. One should ideally focus on a stock-specific approach from this basket as they are likely to give outperforming trading opportunities.

Nifty Bank Daily Chart

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