IGI Logo

Sensex (60687) / Nifty (18103)

As compared to Thursday’s move, we witnessed a complete opposite action on Friday as we witnessed a gap up opening first and then due to sustained buying in some of the heavyweights, Nifty went on to reclaim the 18100 mark at the close. Market seems to have trapped in a range and during the last week although point wise we gyrated within 300 points, it’s hardly one and half a percent range for the Nifty. So we would rather call it a consolidation in the range of 17800 – 18100. For this week, 18200 – 18350 is to be seen as a crucial range and till the time we do not surpass it convincingly, we are not completely out of the woods yet. In fact, it would be too early to comment on it; but we can clearly see a bearish formation of ‘Head and Shoulder’ being in process on the daily chart of Nifty. The neckline support is around 17700 – 17600, which if gets broken, we could see difficult days for market in the short run. With reference to our recent cautious stance on the market, we will not be surprised to see it happening soon, if we fail to go beyond the mentioned zone of 18200 – 18350 in the forthcoming week

The main reason for us to continue with the cautious stance is the formation of ‘Shooting Star’ pattern on monthly chart. As long as we do not break the high of the candle, it can prove its significance anytime. Hence, we reiterate on avoiding aggressive longs and even if one wants to follow stock specific moves, needs to be very selective.

Nifty Daily Chart

Nifty Bank Outlook - (38733)

On Friday, Bank Nifty started on a positive note however it slipped lower in the first couple of hours. Subsequently, as the benchmark index picked positive momentum the banking index as well bounced back to re-test the opening levels and around the same with half a percent gains at 38733.

In our previous outlook, we had mentioned Bank Nifty placed on the 50SMA and we may see a bounce back. Now the Bank Index has formed a ‘Doji’ pattern which indicates uncertainty and is placed between the trendline breakdown levels and 50SMA. In this week it would be crucial to see the follow up move. However with the charts already distorted we would suggest avoiding aggressive longs and infact using any further bounce to lighten up longs. As far as levels are concerned, immediate resistance is at 39000 – 39150 whereas support is placed around 38400 – 38250.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

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

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer