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Sensex (55949) / Nifty (16637)

We had a quiet start yesterday owing to muted global cues. In the initial hour, market showed some promising signs; but due to lack of follow up buying, the momentum disappeared all of a sudden. In fact, during the remaining part of the session, Nifty gyrated in a slender range of 80 points i.e. merely half a percent. Eventually, Nifty ended flat well above the 16600 mark.

Despite being a monthly expiry day, there was no action at all in the market, which is rare to see. At one point it looked like as if banking space is going to lead from the front and is likely to push Nifty beyond 16700. But once again it disappointed as we came off sharply to test the sheet anchor support level of 16600. This level proved its significance as we did see Nifty rebounding couple of times after nearing it

For the coming session, 16600 followed by 16500 are to be seen as immediate supports; whereas on the flipside, 16700 remains to be the level to watch out for. From here on, the direction is likely to be dictated by the banking space only and hence, it would be important to keep a close watch on it.

Nifty Daily Chart

Nifty Bank Outlook - (35618)

Post Wednesday’s disappointment, we began the final day of August series slightly lower but saw some buying interest as we progressed to slowly and steadily inch towards 35800. In the final hour of trade, all of a sudden the benchmark index witnessed some profit taking to conclude the session tad above 35600 with marginal gains.

Yesterday being the monthly expiry day, we were hopeful and was expecting the banking index to show some strength similar to Tuesday. In fact, things looked good in the early morning but the force was really missing as we came closure to the closing hours. However, until we manage to sustain above 35300-35400 on the closing basis, the bias remains positive. On the higher side, the sturdy hurdle remains intact around 36200- 36300 zone. Going ahead, it’s important to see how the banking space performs; whether we see any strong direction move beyond the above mentioned levels or it continues to grind in the range as this will certainly dictate the upcoming move for the benchmark index.

Nifty Bank Daily Chart

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