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Sensex (57920) / Nifty (17186)

On Friday, our markets stated the session with a huge bump up, courtesy to spectacular overnight rally in US bourses. Once again at higher levels, tentative traders chose to take some money off the table. This resulted in trimming some gains but despite this, Nifty managed to conclude the week tad below 17200 by restricting the weekly losses to merely seven tenths of a percent.

It was a bit challenging week as markets remained clueless for the most part of the week. In fact, on Friday when things started to look a bit rosy, the last hour profit booking reduced the excitement level among the market participants. Nevertheless, Nifty defending key support zone (cluster of 89-day EMA and 200-day SMA) amid an uncertainty, bodes well for the bulls. Going ahead, we will not be surprised to see global relief extending a bit, which will provide the much-needed impetus to stronger markets like us. As far as supports are concerned, 17000 – 16800 has proved its mettle and it continues to be a sacrosanct zone for this week as well. On the flipside, if we find tiny support also from the global peers, the Nifty is good to go beyond the study wall of 17400. This will help us find our mojo back and, in this case, we would certainly gear up for a pre-Diwali rally in our market.

Nifty Bank Outlook (39306)

Throughout the week, the bank index witnessed indecisive moves with prices moving in a sequence of one green day followed by one red. However, with a strong bump up opening on Friday, the bulls eventually had an upper hand as the prices ended the week on a positive note with gains of 0.33% against the previous week's close.

During the last week, we witnessed a bullish crossover in the RSI Smoothened indicator, and hence despite some intraday dips, we maintained the positive bias. Now prices have ended above the last four days' trading range and have reclaimed the key 50-day simple moving average. On Friday, there was some tentativeness visible at higher levels as prices reached the previous week's high around 39600 levels. Going ahead, the level of 39600 would remain crucial for the bulls as a sustained closing above it would confirm a ‘Bullish Cup and Handle’ pattern on the hourly charts that can fuel the rally towards 40000 - 40800 odd levels. On the flip side, the bullish intraday gap left around 38700 - 39000 is likely to act as a strong support zone. We continue to remain upbeat and hence, traders should use intra-week declines as a buying opportunity

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