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Sensex (53140) / Nifty (15923)

During the last week, market started on a pleasant note on Monday owing to slightly cheerful mood across the globe. However on the same day, all of a sudden market took a nosedive and before anyone could realize Nifty was retesting 15650 levels. Fortunately 15650 once again acted as a sheet anchor to restrict the sudden hiccup. During the remaining part of the week, Nifty continued its slow and steady march to conclude at the highest point. In the process, it added nearly one and half a percent gains to the previous weekly close.

In last month or so, market made several attempts to go pass the level of 15910; but on every occasion, markets struggled at higher levels. Finally on the weekly expiry day, this sturdy wall was breached and that too on a closing basis. In fact, although there was no follow up buying seen, the week concluded at a new high which certainly bodes well for the bulls. Now, 16000 is merely a formality and if there is no aberration on the global front, we would see market reaching the millstone in the first half of this week itself. After this, 16200 is the next level to watch out for. We reiterate that if this assumption has to turn into reality, the banking needs to contribute and hence, all eyes on BANKNIFTY. The moment it traverses the 36000 mark, we would see NIFTY hastening beyond the magical figure of 16000. On the flipside, 15800 followed by 15630 are to be seen as key supports.

One needs to keep in mind that any sustainable move below 15630 would apply brakes on the ongoing optimism and we may then see some corrective moves in the market in the short term. During the week, the stellar move in IT space lifted the markets higher from the lower levels. Also, the broader end of the spectrum too did extremely well. One can certainly continue with a stock centric approach and keep a tab on all the above mentioned scenarios.

Nifty Daily Chart

Nifty Bank Outlook - (35752)

On Friday, Bank Nifty started on a mild positive note however from the word go it slipped lower forming an 'Open High' scenario and after a gradual decline throughout the session ended with a loss of 0.43% tad above 35750.

In spite of a bullish breakout on Thursday above the 35810 levels; the bank nifty disappointed on Friday with a lack of follow-up buying. This was due to as Bank Nifty has reached a key psychological level of 36000. We reiterate with our view that for the next leg of broader market rally the banking space needs to participate and the outperformance will only come when the bank nifty sustains above the 36000 levels. Hence for the next few sessions, 35900 - 36000 remains a key resistance whereas, on the flip side, 35600 - 35300 are the immediate support. Traders are advised to focus on stock-specific trades within this basket as with the result season they may give outperforming opportunities.

Nifty Bank Daily Chart

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