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Sensex (62182) / Nifty (18497)

During the last week, our markets started on a flat note in absence of global as well as domestic triggers. As the week progressed, key indices continue to remain in a slumber phase. During the mid-week RBI monetary policy, it appeared as if the Governor dented the sentiments; but immediately on the next day, the banking space proved its significance as we saw BANKNIFTY clocking new highs towards the fag end of the week. On Friday, IT counters became the spoilsport by dragging Nifty below the 18500 mark. Fortunately, the tail end recovery pulled Nifty from lower levels to defend 18400 convincingly.

Finally, markets took a breather after recent relentless run. The Nifty shed slightly over a percent on a week-on-week basis. With couple of heavyweights imposing pressure on the last day of the week, Nifty was on the verge of a breakdown; but fortunately, bulls managed to defend their territory at the end. Now, taking a glance at the daily time frame chart, the Nifty is now placed slightly above the key support of ’20-day EMA’ which coincides with previous swing high of 18450. Hence, we continue to remain upbeat as long as 18400 – 18300 is not violated on a closing basis. Until then, any intermediate decline should only be construed as a profit booking before resuming the upward trend. On the flipside, 18650 – 18700 are the levels to watch out for. The moment Nifty surpasses this, one should gear up for yet another milestone of 19000 in near future

Nifty Bank Outlook (43633)

The unprecedented move of the Bank Nifty index continued for the tenth consecutive week and settled at new lifetime high levels. The spectacular move in the PSU bank index contributed to the upliftment of the sentiments and helped the Bank Nifty index to continue its northward journey. The index concluded the week with gains of over 1.20 percent and settled at new highs, a tad above 43600 levels. On the technical aspect, the index is in a cycle of higher highs – higher lows, which signifies a positive development. The ongoing price action construes a robust setup for the index and is highly anticipated to continue the same in a comparable period. As far as levels are concerned, 43000-42900 is likely to cushion any intra-week blip, followed by the sacrosanct support of the unfilled gap of 42550-42500. On the flip side, the fresh breakout has opened the potential for the index to march toward the 44000-44500 mark in the coming period. The overall structure is buoyant, where any minor correction could be seen as an opportunity to add fresh longs in the index.

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