IGI Logo

Sensex (57596) / Nifty (17223)

Quite surprisingly, we had a gap down opening yesterday below 17100 which was much lower than what SGX was indicating. But this abnormality got settled immediately as we saw Nifty returning to the equilibrium in the opening trades after reclaiming the 17150 mark. It went on to move closer to 17300 around the midsession, but once again some nervousness in financial space dragged the benchmark lower to conclude the weekly expiry with a negligible loss.

It was clearly a day of consolidation as we saw Nifty vacillating in a modest range with no clear direction. This was mainly due to overall sector specific churning we witnessed throughout the day. The banking remains to be a spoilsport; whereas the IT and Reliance continues to provide the helping hand. Till the time, we do not see Nifty beyond 17450, this consolidation is likely to continue.

So, as far as levels are concerned, 17300 – 17375 – 17450 are the immediate levels to watch out for in the upward direction; whereas on the lower side, 17100 – 17000 remains to be a sacrosanct support zone. Traders are advised not to trade aggressively in indices in this congestion phase, rather continue to focus on thematic moves which are likely to provide excellent trading opportunities.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (35527)

BankNifty started with a gap down opening however post opening it started moving higher to recover most of the lost ground. This bounce however got sold into to slip below morning low and to eventually end with a loss of 1.72% at 35527.

Clearly, the banking space was the weakest link in yesterday’s session and this was due to the bank index failing to cross the key hurdle around 36700 – 37000 zone. Now yesterday, we witnessed selling pressure on the intraday bounce and hence the bearish gap left around 36100 – 35900 is the immediate resistance. For the positive momentum to resume the said levels need to be crossed. On the flip side, 35000 – 35300 is the key support which if broken may trigger further weakness for the near term. Broadly we continue to see the key indices into a consolidation mode and hence traders should focus on stock specific front for outperforming opportunities.

Exhibit 2: 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