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Sensex (62131) / Nifty (18497)

We had a nervous start for the week in line with not so favourable global cues. In the initial trades, Nifty sneaked below the 18400 mark and even went on to challenge 18350. Fortunately, the mighty bulls came for a rescue as some of the heavyweight pockets cushioned these early tremors. In fact, we witnessed a V-shaped recovery in the initial hour to recoup all losses in a quick span. During the remaining part of the session, markets remained range bound; but successfully managed to safeguard their strong recovery. Eventually, Nifty ended the session precisely at Friday’s close a tad below the 18500 mark.

With reference to our previous commentary, we had mentioned how crucial it is for Nifty to hold the sacrosanct support zone of 18400 – 18300. Yesterday’s smart recovery after testing the midpoint of this range has certainly proved the significance of this key demand zone. Now, yesterday’s low of 18345 should be considered as an important point and till the time, it remains unbroken, we would continue with our positive stance on the market. For the coming session, 18550 and 18650 are to be treated as immediate hurdles. The moment we overcome these barriers, we would see resumption of higher degree uptrend and then a path towards the next milestone of 19000 once again gets unfolded. Let’s see how things pan out going ahead.

Nifty Bank Outlook (43709)

The start of the week was on a negative note however the morning blip got immediately bought to recover lost ground within a few minutes. The second half however was lackluster as there was no major traction and after trading in a range price eventually ended with minor gains tad above 43700 levels.

On the technical front not much has changed and the bank index remains an outperformer. Going ahead as well we would advocate using dips as a buying opportunity. In such a scenario, immediate support is seen around 43350 levels followed by 43000 levels. On the higher side, 44200 is the immediate resistance and if 44500 is seen before the weekly expiry then that should be considered for booking profits as indicators are in the overbought zone. The overall trend is strongly bullish, and a strong further upside is expected in the near term however considering the key events lined up; one should be selective and avoid undue risk.

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