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Sensex (60673) / Nifty (17827)

We had a positive start to the session, however, post the strong opening there was a tug of war between the bulls and bears as there were choppy moves on both sides of the trend. Nifty eventually ended the indecisive session with a negligible loss tad above the 17800 levels.

After a head start the bulls had a great chance to make a comeback however bears continued to defend their levels and intraday bounce were getting sold into. Nifty slipped for the third consecutive session however the momentum of the fall has eased down considering the prices are approaching the lower band of the recent consolidation phase. Going ahead, 17800 – 17700 remains a sacrosanct support zone and we remain hopeful for the bulls as long these key levels are held. On the flip side, 17900 – 18000 seems a stiff hurdle and for the broad base rally to trigger these levels needs to be surpassed with some authority

The entire February month has been into a consolidation phase and very soon prices may break these shackles. Traders are waiting for some triggers and with key events lined up on the global front; markets are likely to react more to the global cues. Hence keep an eye on these developments and keep focusing on identifying apt themes for outperforming opportunities.

Nifty Bank Outlook (40674)

We started the session slightly in the green and after initial trades, the BANKNIFTY settled in the negative territory. Thereafter, the direction as well as momentum was clearly missing in the market. The banking index eventually ended the session on a flat note.

In last couple of days, BANKNIFTY remained below 41000 which ideally is a sign of weakness; but at the same time, if we take a glance at the daily chart, we can see 50% Fibonacci retracement coinciding around 40600-40500. Last two days’ low is precisely around the same zone; indicating strong support zone for the index. Hence, the coming session is likely to be the crucial one. If things have to get worsened, we would slide below these key pivotal points. Whereas on the other hand, if any buying has to emerge, there wouldn’t be a better spot than this. As far as resistances are concerned, 40900 - 41100 are to be seen major hurdles, above which a sharp short covering cannot be ruled out.

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