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Sensex (49581) / Nifty (14923)

Markets continues with its recent trend where the opening on Monday happens with either upside or a downside gap. For the second straight week markets started the week on a pleasant note owing to some of the cooling off across the globe. Subsequently there was a brief period of consolidation being witnessed in our market as we immediately saw the momentum picking up in the upward direction. Throughout the remaining part of the session, the Nifty went on to post handsome gains over one and half a percent to reclaim the 14900 mark with some authority.

After nearly 2- 3 weeks, the bulls looked dominant right from the word go and they kept thrashing all intermediate hurdles with an ease. Throughout the day, Nifty maintained its sturdy posture by making higher highs and higher lows. Now, Nifty is again above 14900 and we hope it doesn’t deceive us the way it did in the previous week. But looking at the overall development, it looks like we are going to head higher from heron; because the authenticity of any move is measured by the quality of participation in it and yesterday the banking space led from the front by giving a humongous intraday rally. When this pocket contributes heavily, the up move can be considered a genuine one. Thus, we will not be surprised to see Nifty crossing 14967 at the opening today to march towards 15044 and beyond levels. On the flipside, 14850 – 14790 are to be seen as intraday supports.

Since last few days, the global markets are having a complete influence on our markets but the way things seem to have settled down globally, we hope to see a continuation of yesterday’s up move. Apart from the financial space, the broader market too did well throughout the day and hence, it would be interesting to see how things pan out in today’s session.

Nifty Daily Chart

Nifty Bank Outlook - (33459)

Similar to previous week, we started-off the proceeding with an upside gap and witnessed a positive traction from the word go. The banking index outperformed the benchmark and managed to surpass recent intraday hurdles by an ease. Eventually, the BankNifty concluded the day almost at the highest point with a fabulous gains of over four percent.

Last two consecutive weeks, BankNifty traded in the narrow range (32000-33300) giving no clues of either direction. Finally, yesterday we saw a sharp upmove to surpass the higher side of the range with a strong posture as if there is no tomorrow. If market has to gain real strength, such participation from the BankNifty is very important to have a sustainable upmove in future. On the daily chart, the BankNifty has managed to surpass the falling trendline which has acted as a study hurdle in last three attempt. Considering yesterday’s development, we are likely to open on a strong note and head towards the next resistance zone of 34000-34200. On the downside, 33000-33200 should now act as support.

Nifty Bank Daily Chart

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