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Sensex (58215) / Nifty (17152)

After US bourses experienced a sharp sell-off following the key FED policy, the DOW futures made a remarkable recovery in the morning, Hence, the SGX Nifty indicated a mild negative opening for our markets. The Nifty started on a sluggish note and the initial dip was absorbed comfortably to retest the 17200 levels, suggesting a possibility of much-needed relief in our market. However, a sell-off in the penultimate hour poured complete water on this attempt to retest morning lows. Eventually, we concluded the weekly expiry with a loss of 0.44% at 17077.

The session was disappointing for the bulls, as prices failed to surpass the sturdy wall of 17200, possibly due to the uncertainty in the global markets. As a result, traders might have opted to lighten up the positions. If bulls have to regain conviction, prices need to break beyond the sturdy wall of 17200-17250. Until then, prices may continue to see lethargic moves, with support seen around the 17000 mark. If the US market weakens further, the sacrosanct support of 17000 will be in jeopardy. In this case, the next key level to watch out for would be around the recent lows of 16850. However, we continue to remain hopeful and expect some pleasant moves to unfold in global bourses.

Nifty Bank Outlook (39617)

Bank Nifty started the day on a negative note, but bulls stepped in to push prices up, and a strong positive trend emerged, retesting the 40200 level. However, during the penultimate hour, the expiry factor came into play, and prices plummeted to retest morning lows, with Bank Nifty eventually ending with a loss just above 39600.

Yesterday was a mixed day, with optimism seen during the first half as private banks outperformed, but due to global uncertainty, profit booking was witnessed in the second half. On the daily chart, prices faced resistance at the 20EMA (40200), and we sense, as long this key average is not taken out convincingly, prices may remain hesitant at higher levels. On the other hand, key support lies in the range of 39000-38600. Currently, the major indices lack trending moves, hence traders should focus on a stock-centric approach within the space that is giving outperforming moves.

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