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Sensex (51025) / Nifty (15098)

In similar lines to the previous session, our markets started on a positive note around the 15050 mark. While the benchmark remained in a range for the first few hours some profit booking was seen in broader markets and it seemed that only banking space was keeping markets up. Subsequently during the mid-session, we witnessed a vertical fall to give up all the morning gains to test around the previous session low. However, the banking space again became the catalyst to push markets up and with the help of IT space in the last hour the Nifty eventually ended with gains of around a percent at the 15100 mark.

While the markets remain action-packed the key indices remains trapped within a range (14900 – 15100) and yesterday exactly after taking support on the lower range we witnessed a strong bounce back in the penultimate hour to end near the higher range of consolidation. The charioteer of yesterday’s up move was Banking and IT space and it being the major constituents of the benchmark it certainly bodes well for the bulls. However, in the last few sessions, we have seen that there’s no place for complacency as whenever it seemed trend has established market has reversed in the opposite direction. The weekly expiry has preponed a bit due to ‘Mahashivratri’ holiday on Thursday. For the coming session, we will closely watch the levels of 15150 – 15200 and any sustained trade above it can trigger a fresh leg of upmove. However, a failure to do the same can drag the Nifty back to the lower range of 14900 that has acted as a support for the last two days and should be taken as a sacrosanct point.

Nifty Daily Chart

Nifty Bank Outlook - (35228)

Once again, BankNifty started-off the session on a cheerful note tad above 35700 and follow-up buying thereafter led index surpassing the psychological mark of 36000. In the midst, we witnessed sharp fall to wipe-off all the intraday gains but fortunately index recovered in the final hour of trade to conclude the session with the handsome gains of 1.67% to Monday’s close. Heavy weight banking counters like HDFCBANK, KOTAKBANK and ICICBANK were the major contributors. The Banking index outperformed the benchmark index and managed to surpass Monday’s high and has even concluded above it, this is certainly a light of hopes for Bulls. Any follow-up buying above 36000 mark in the coming sessions, shall bring the index towards 36400- 36500. As mentioned in our previous article, BankNifty has been taking support near 200 SMA of hourly chart and considering same the immediate support zone is now placed around 35300-35400 levels. For today’s session, we need to wait for follow-up activity before initiating any directional trade.

Nifty Bank Daily Chart

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