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Sensex (59333) / Nifty (17659)

The US markets climbed overnight after easing inflation report and yesterday morning too, they extended the lead. This development resulted in a bump up at the opening in our markets, mirroring the SGX NIFTY. It appeared as if we are going to witness a bumper session on weekly expiry, but the follow up was clearly missing as benchmark index Nifty chose to consolidate in merely 60 points throughout the remaining part of the session. Eventually the day ended with seven tenths of percent gains; but convincingly below the opening level.

We had a muted session on Wednesday and if we exclude the opening gap, yesterday’s session was lethargic than the previous one (for NIFTY). However, the other high beta heavyweight index, BANKNIFTY had its own plans. Unlike the Nifty, banking index extended its gains as the day progressed and eventually ended the session almost at the highest point with more than one and half a percent gains. It would be interesting to see the activities in global bourses today; because one more round of buying there would probably provide the much needed force to surpass yesterday’s high. For the coming session, 17720 followed by 17780 are to be seen as immediate hurdles; whereas on the flipside, 17630 – 17560 are to be treated as intraday supports.

Nifty Bank Outlook (38880)

Bank Nifty as well started with a big gap up opening, while there was no follow-up buying in benchmark index Nifty; the banking index extended beyond the morning gains and with positive momentum throughout the session eventually ended with gains of 1.55% at 38880

With yesterday's strong up move; Bank Nifty has surpassed the key hurdle of the April Swing high of 38759 and this move is seen with a strong bullish gap left on the daily chart. This indicates that the bulls are in strong momentum however one should avoid getting complacent as the oscillators are in deep overbought condition and as the market is approaching the current calendar year high of 39424 marked in Feb month. Going ahead, 39000 - 39500 is seen as stiff resistance whereas the bullish gap left yesterday at 38400 - 38650 is seen as immediate support. Ahead of the long weekend traders are advised to be very selective and avoid carrying aggressive overnight bets.

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