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Sensex (52880) / Nifty (15834)

Friday’s tail end recovery was followed by a gap up opening yesterday to kick-start the new trading week. We clearly shrugged off mixed global cues early in the morning and traded firmly post the opening as well. Although we did not add significant gains after the opening hour, the Nifty maintained its positive posture throughout the session to close tad below the 15850 mark. Amongst the sectoral movers, the overall strength in financial and metal counters propelled the Nifty higher.

Since last 2 – 3 weeks, market has been moving in a consolidation phase and it’s been clearly struggling to reach the magical figure of 16000. Now the way broader market has behaved in last couple of sessions, we will not be surprised to see Nifty reaching there in this leg of the rally itself and the major catalyst of this achievement is likely to be the financial space. Let’s see if this presumption turns right or not and the clarity is likely to come in a day or two. The other positive factor of yesterday’s move is the shifting of immediate support base higher towards 15750 – 15700.

We would keep our fingers crossed and hope for Nifty to reach new milestone in this week itself. This development is important because not only the heavyweights are likely to come of out of the congestion but lot of other thematic moves would also start to unfold. Traders are advised to keep a tab of all these levels and meanwhile continue to trade in individual stocks by picking up the appropriate candidates.

Nifty Daily Chart

Nifty Bank Outlook - (35312)

Bank Nifty started the week with a gap up opening and rallied to surpass 35200 mark at close. The index witnessed an outperformance in yesterday’s session as some of the index heavyweights saw good buying interest. The index has picked up momentum from the trendline support that we had mentioned about. This hints at probability that this sector could gain back momentum and take the lead to take the benchmark higher. Hence, traders are advised to look for stock specific buying opportunities from the sector. The immediate supports for the index are now placed around 35015 and 34925 whereas resistances are seen around 35380 and 35575.

Nifty Bank Daily Chart

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