IGI Logo

Sensex (52502) / Nifty (15768)

Markets had a nervous start yesterday owing to sluggish cues from the global bourses. In the initial trade, it attempted to move higher but failed to sustain as it approached the 15900 mark. This led to a decent profit booking in the subsequent hour. The corrective move seemed to have arrested around the midsession and in fact, market made one more attempt to rebound in the latter half. However, a tail end correction across the board dragged Nifty at its lowest point of the day. Eventually, Nifty ended the session with more than half a percent cut to close tad above 15750.

Since last couple of days we have been advising on booking profits and staying light in the market. The way market is behaving around 15800 – 15900, the strength is clearly missing. Also if we take a glance at the NIFTY MIDCAP 50 index, it is struggling around the crucial juncture (as it’s placed around the key Fibonacci ratios). In fact yesterday’s weakness in the broader market is clearly hinting towards some sort of profit booking in the near term. Hence we continue to remain cautious and advise traders to stay light on positions.

As far as Nifty is concerned, 15820 – 15900 to be seen as strong resistances; whereas on the lower side, 15700 is to be considered a crucial support. For the weekly expiry session, we would advise traders existing longs and aggressive traders can opt to short as well if we see Nifty around 15820. If the selling happens as per our expectation, the possibility of breaking 15700 increases, which could then lead to some extended correction in the following sessions.

Nifty Daily Chart

Nifty Bank Outlook - (35003)

We started-off the day slightly lower but saw smart recovery in the initial half an hour of trade to almost reclaim 35400 mark. However, these gains were short lived as the BankNifty attracted some profit taking at the higher levels to plunge below the psychological mark of 35000. In the latter half, we saw an attempt of recovery but this got sold into to eventually concluded the day with the loss of 0.69% to its previous close.

Excluding the last two days of recovery, inline to recent price action the banking index lacked momentum and attracted decent shorts around the previous swing highs around 35300-35400. Considering yesterday profit booking, 35300-35400 levels has now gained more respect and it will be important for BankNifty to surpass the mentioned levels to gain real strength and in turn propel the benchmark index to see next leg of rally beyond 15900 mark. At this point in time, we would advised traders to keep booking profit in case of any intraday bounce back. Meanwhile, options traders can look to buy ATM puts for today’s weekly expiry if we see any intraday move towards 35250.

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