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Sensex (52485) / Nifty (15722)

During the last week, market started with an upside gap on Monday at new record high. However, since there was follow up buying missing in the heavyweight constituents, the Nifty kept descending gradually after registering a high of 15915.65 in the opening trade. For the major part of the day, index consolidated with a mild negative bias to eventually conclude tad above the 15800 mark by shedding nearly three tenths of a percent. The similar trend continued for the following sessions and in the process, Nifty went on to test sub15700 levels. Fortunately on Friday, there was some buying observed at lower levels, which resulted in defending the key support of 15650 successfully.

It was probably the dullest week in last fifteen months our markets have experienced. There have been many instances where key indices undergo some sort of consolidation and trades in a slender range, but mostly in such times, the action continues in individual themes and there are ample of opportunities available in the market to keep the traders engrossed. Barring Friday, stock specific moves were also missing throughout the week which was frustrating for momentum traders. Now as far as levels are concerned, we managed to hold crucial support of 15650. As long as 15650 – 15450 are being held, the bulls have no reason to worry for. On the upside, reaching the new milestone of 16000 has become challenging and the market clearly seem to be waiting for some sort of trigger to reach there. Before this, 15800 followed by 15900 are to be seen as immediate hurdles.

With Friday’s some positivity, the hopes have certainly built for benchmark index to head higher towards the millstone in this week. But we reiterate, if that has to happen, the banking space certainly needs to come out of its slumber phase. Let’s see how things pan out going ahead and till then it’s better to keep a close tab of all the mentioned levels.

Nifty Daily Chart

Nifty Bank Outlook - (34810)

On Friday, Bank Nifty started on a mild positive note, and then it slipped lower to test below Thursday's low. Subsequently, the bank index traded in a range throughout the session and with some positive momentum in the last hour ended with gains of 0.36% at 34810.

In our last few outlooks, we have been mentioning about the bank index approaching the key support of advancing trendline. On Friday after testing these levels we saw some bounce back and today's session will be crucial as a follow upmove can create some optimism post the last week's boredom. In such a scenario, 35200 - 35600 can be tested. On the flip side, we continue to see strong support zone at 34600 followed by 34200 levels. On Friday, we witnessed lots of heavyweights space bouncing from key supports, and going ahead traders can prefer a stock-specific approach from the basket for the outperforming opportunities.

Nifty Bank Daily Chart

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