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Sensex (48782) / Nifty (14631)

During the last week, trading started on a positive note and as the week progressed, the recovery mode started picking up some pace. Before anyone could realize, Nifty and BANKNIFTY were back to 15000 and 34000, respectively. Everything looked hunky dory and appeared as if we are headed higher now. But market participants became a bit tentative around these psychological levels which eventually resulted in a sharp decline on Friday. Despite this, the week ended with more than 2% gains for the Nifty

The market seems to be in a deceptive mode as it first caught bears on the wrong foot after surpassing 14750 and now with the tail end correction, the bulls are completely clueless and unsure of the next move. Such market is literally a nightmare for the swing traders as market is unable to see any kind of follow up move. Hence looking at all this, it is quite clear that the benchmark is trapped in a wider range of 1000 points i.e. 15000 – 14150 and till the time we do not see sustainable breakout on either side, we would like to remain neutral on market and would like to consider each day as a new day. Within this consolidation, the inclination would slightly be on the positive side as we are seeing a strong support zone of 14550 – 14450. Here the banking index holds some significance as long as 32000 remain intact. For Nifty, the immediate resistances are to be seen at 14730 – 14860.

Nifty Daily Chart

Nifty Bank Outlook - (32782)

On Friday, Bank Nifty witnessed a gap down opening and post that it tried to bounce back during the first couple of hours. Subsequently, this bounce back didn't sustain and a gradual decline for the remaining part resulted in a cut of 2.77% to close at 32781.

It was an action-packed week for the bank index as it was a charioteer during the upmove in the initial part as well as the dragger of the market during the fag end. It eventually ended with weekly gains of 3.34% and despite an unclear trend, our inclination remains on the positive side. This bias remains as long the prices hold the strong support of 32000 levels. As mentioned above, traders should avoid aggressive positions on both sides and consider each day as a new day as long as long we don't see a clear trending move. As far as levels are concerned 32200 - 32000 is the immediate support whereas 33100 - 33400 is the immediate resistance zone.

Nifty Bank Daily Chart

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