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Sensex (52100) / Nifty (15670)

During last week, Market started flat on Monday and in fact, in the initial trade, there was some mild negativity seen in the market. But similar to the recent trend, market absorbed the pressure and then resumed its upward momentum, once again led by the giant RELIANCE. As the day progressed, the buying momentum continued to first reach the new milestone of 15500 and in the final hour 15600 became the reality as well. Eventually, the Nifty ended the session with nearly a percent gains. After a brief pause on the subsequent day, the Nifty continued its northward march to hit fresh record highs beyond 15700 during the latter half of the week to conclude with one and half a percent gains

The kind of price action we have been witnessing since few days, the commentary would sound a bit repetitive because there is nothing different to talk about. As we have been mentioning, every 100 points upside level should be treated as an immediate resistance and now this level comes at 15800. Ideally considering the Fibonacci ratios, we do not see any major hurdle before 16000 and hence, even if this has to be met in the near term, the move would continue to be slow and steady in nature. One of the favourable factors is the significant drop in INDIA VIX which is back to the pre-COVID levels; bodes well for the bulls. On the flipside, 15600 – 15525 – 15450 are to be seen as key support levels. Only a handful of index heavyweights are giving some notable moves, otherwise the real action still continues in the broader end of the spectrum. Stocks from the cash segment are literally roaring and thus it’s advisable to stick to this approach.

Nifty Daily Chart

Nifty Bank Outlook - (35292)

On Friday, we started-off the session almost flat and in line to last couple of sessions the momentum was missing. In the initial hour of trade, index inched towards 35800 but failed to sustain at higher levels and soon we witnessed some fresh selling pressure post RBI governor announced to keep the rates unchanged for sixth policy meet. As the day progressed, the banking index slide below 35200 mark and finally concluded the day with the cut of a percent.

It’s the second week of underperformance by the BankNifty, especially the Friday’s fall ruined the overall gains and hence index concluded the week with the marginal gains of 0.43%. Really speaking, the week was full of boredom except for Friday’s move and there isn’t any major change in the overall chart structure to be talked about. As far as levels are concerned, around 35000 mark is the immediate demand zone; whereas, on the higher side 35800-36000 shall be looked as resistance area. The overall action still remains outside this basket; hence, would advise traders’ focusing on same for the time being.

Nifty Bank Daily Chart

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