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Sensex (59727) / Nifty (17660)

Our markets started the day on a promising note but failed to capitalize on the initial gains and quite similar to the previous session gave away opening lead within a few minutes. As the day progressed, Nifty went on to test levels around 17600, however, with some modest recovery, prices eventually ended in red with a loss of 0.26%.

As highlighted in our previous commentary, after the recent strong run, the benchmark index seems to have entered a consolidation phase and it was quite visible in the price action. The undertone, however, remains bullish as even though the index remained in a slender range; individual stocks continued to give mesmerizing moves. As we advance, we may continue to see the Index consolidating in a range of 17500 – 17900 and meanwhile, traders are advised to keep a tab around 17570 – 17500 levels to go long. On the flip side, the immediate hurdles are clearly visible in the range of 17800 – 17900.

Sectorally, the pharma counters were on a roll yesterday and in fact, they are showing early signs of revival of late after a long slumber phase. The Midcap space too was bucking the trend throughout the session. Going ahead, the apt strategy in a consolidation phase would be to continue focusing on such thematic moves that would give excellent trading opportunities.

Nifty Bank Outlook (42265)

The Banking index started the session with an upbeat tune, contrasting the price action of the benchmark index. However, in the latter half, a steep correction was seen that plummeted the ongoing sentiments and the index plunged lower toward the 42100 odd zone. From thereon, the index had a lackluster move within a slender range and concluded the day with a mere gain of 0.01 percent to settle at 42265 level.

Technically, the Bank Nifty index continued its winning streak but certainly lacked follow-up buying interest at the higher grounds. On the technical chart, there have been no significant changes in the view as the index settled nearly at the same levels as the previous closure. At present, the 42000-41800 zone is likely to cushion any blip, while the 41500 mark is expected to act as the sheet anchor. While on the higher end, 42600 is likely to act as an immediate hurdle, and an authoritative closure above which could only open up the potential to test the 43000 mark in the near period.

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