IGI Logo

Sensex (61193) / Nifty (18090)

US markets had a rough session Tuesday night which resulted in nervous start for most of the Asian bourses early in the morning. We too had a sluggish start but certainly not to the tune of what SGX was indicating. In the initial hour, the benchmark corrected slightly to test the 18050 mark; but a consolidation thereafter with a hint of modest recovery towards the end, led Nifty to close with nominal losses.

We had clearly stated how it would be a challenging task for the Nifty to surpass the sturdy wall of 18200 - 18260 in the ongoing run. Yesterday’s sluggishness is clearly a glimpse of it and now all eyes would be on FED chairman. Any unfavourable outcome from this event would certainly lead to some extended profit booking to test 18000 - 17950 levels. On the flipside, 18150 - 18200 - 18260 are the immediate levels to watch out for. The overall trend remains strongly bullish and hence, we would continue with our buy on declines strategy in the near term. Meanwhile, traders can continue focusing on stock centric approach.

Nifty Bank Outlook (43313)

We had a tentative start ahead of the weekly expiry session, but fortunately no major damage was seen thereafter, in fact the banking index after some consolidation in the first half of the day gained strength to inch towards 43350. Eventually, we settled the day with the marginal loss of one tenth of a percent tad above 43300.

In line to previous trading session, we witnessed a range bound trade in Bank Nifty with no relevant change in chart structure. However, the buying interest at lower levels was clearly hinting Bulls are not ready to give up and are buying in any minor dips. As far as levels are concerned, 43500-43800 remains an immediate hurdle, while the support zone is placed around the 43000-42700 zone. As mentioned in previous commentary, we maintain our optimistic stance on this space as a whole but are also of the opinion that it won't be a smooth rise going forward. Hence, traders' should use intraday dips to add longs and exit their positions with timely small profits.

To Read Complete Report & Disclaimer Click Here

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

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer