IGI Logo

Sensex (59646) / Nifty (17759)

On Friday, market started off on a muted note and after the initial hours, we witnessed a nosedive in key indices. Before anyone could realize, we were off Morning’s high by a fair margin. Eventually, with some consolidation in the latter half, the Nifty ended Friday’s session around 17750 with more than a percent cut and thereby trimmed major chunk of weekly gains

In our previous intra-week commentary, we had clearly stated how it’s important not to get carried away by Thursday’s close at 4-month high. Friday’s decent correction has certainly validated our stance of staying light at higher levels and now, the way our key indices snapped their 8- days winning streak, it does not augur well for monthly expiry week. From a technical point of view, Friday’s large bearish candle has engulfed previous three sessions’ price movement, which is a sign of weakness. In addition, we have closed convincingly below the ‘5-day EMA’ for the first time after July 26. Hence, in the first half of the coming week, any bounce towards 17800 – 17875 is likely to get sold into. Traders are advised to lighten up longs in this rebound and stay on the sidelines for a while. Aggressive traders can certainly look to initiate bearish bets by keeping a strict exit strategy beyond 18000. On the flipside, if we see some nervousness globally, we may see Nifty testing lower levels of 17600 – 17450.

Nifty Bank Outlook (38986)

The Bank Nifty index has snapped its winning streak post four consecutive weeks of rallying and has seen a mere correction of 0.14 percent on the week-on-week basis. The index has maintained a positive stature throughout the truncated week barring the last-day correction that plunged it below the 39000 mark

On the technical aspect, the banking index is still in the bullish trajectory as it hovers well above all its major exponential moving averages on the daily chart. However, post the vertical rally in the recent period, one should not rule out the scope of profit booking from the higher levels. Meanwhile, the undertone is likely to favor the bulls, wherein any minor correction could be seen as healthy and also as an opportunity to add fresh longs. As far as levels are concerned, the unfilled gap placed around 38640-38400 is likely to provide a cushion for the index. While on the flip side, 39500-39750 is expected to act as the immediate hurdle.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer