IGI Logo

Sensex (47705) / Nifty (14296)

We had a surprising opening for the second consecutive session but unlike Monday, this time it was in the upward direction. In the initial hours, market came off a bit gradually after a good head start above 14500. It managed to maintain its positive posture for the major part of the first half. However, in the latter half market started correcting rapidly and due to a sudden downtick in the penultimate hour, Nifty went on to test Monday’s low of 14200. It was about to break it, but there was some recovery seen towards the fag end which eventually pulled the index slightly higher to close around the 14300 mark.

Market is struggling at higher levels and Tuesday’s session is a clear indication of this as it failed to sustain despite a strong start. Tuesday’s high precisely coincided around the mentioned resistance zone of 14500 – 14550 and the way it dropped towards 14200 in the latter half, things do not bode well for the bulls. Although we did manage to hold this key support on Tuesday, the possibility of sliding below it, has increased now. Below 14200, it opens up the downside zone of 14000 – 13700 and hence, we continue to remain cautious and advise against creating aggressive longs for a while. On Tuesday barring Pharma, most of other sectors looked weak in the latter half. Thus one need to be very watchful while picking up a stock specific trade.

Nifty Daily Chart

Nifty Bank Outlook - (31208)

On Tuesday, we started-off the day on a positive note and saw some up-move towards 31700 in the initial half an hour of trade. However, the follow-up buying was really missing and hence we saw the banking index slowly sliding below 31000 mark. Eventually, due to some recovery in the fag end we concluded the session with a cut of 0.33% to its previous close. The banking index has been a major culprit in the correction seen post market hitting all-time highs.

The way it was hovering around the 89 EMA in the daily chart, we were really uncomfortable in adding any longs and hence suggested to stay light. At current juncture, the levels of 32000- 32200 which was acting as a support and is now a sturdy hurdle for BankNifty and until be sustain below same traders are advised avoiding any aggressive bets. Considering SGX Nifty, it seems that we may start the day with a downside gap and hence the possibility of index sliding below recent lows of 30400 seems very much likely now. Thus, any intraday upmove shall be utilized to add bearish bets especially in this sector as a whole.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf

SEBI Registration number is INH000000164

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