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Sensex (61663) / Nifty (18308)

During the last week, Nifty consolidated in a slender range of 200 odd points for a major part of the week. By the weekend, a sell-off triggered in the broader market, which dragged the benchmark index lower, but bulls retaliated well to safeguard the support zone and concluded the week with a mere cut of 0.23 percent. With the weekly closure, Nifty snapped its four weeks of winning streak and settled a tad above the 18300 level.

It was a lackluster week for the market participants as the follow-up buying was clearly missing to uplift the market, and this resulted in a lull movement in the benchmark index. Global concerns over rising inflation have led to mixed action, mirroring which our market remained tentative at the higher levels. On the technical front, the structure remains upbeat. As far as levels are concerned, the bullish gap of 18100-18250 is likely to provide a cushion to any intra-week blip, and it is highly anticipated that the dip would augur well for the bulls. On the flip side, the 18450-18500 is a significant hurdle for the bulls, and any decisive breach above the same could only trigger a fresh round of rally in the market. Meanwhile, the market awaits some trigger points to have an upsurge, and in the meantime, the index is expected to remain in the mentioned range.

Nifty Bank Outlook (42437)

Bank Nifty continued with its northward journey as the weekly winning streak extends for the seventh consecutive week. The traction however has cooled down a bit as the weekly gains were under a percent to end a tad below the 42450 levels.

The bank index continues to be the charioteer for the bulls as even though there was some tentativeness at higher levels for the broader markets; this index continued to make fresh new highs. The momentum on the Index front was not that high; however, we witnessed some of the private and PSU banks giving mesmerizing moves. Throughout the week, we witnessed intraday dips getting bought into, and on Friday as well prices bounced back sharply after testing the 5EMA on the daily chart. Going ahead, we continue to see immediate support around the 42200 - 42100 levels whereas the strong support remains around the bullish gap left around the 41900 - 41650 levels. On the flip side, 42750 - 43000 seems an immediate resistance zone. In this consolidation phase, the ideal strategy would be buying around the support levels while booking profit around the mentioned resistance levels.

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