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Sensex (52232) / Nifty (15690)

Markets opened higher yesterday at new highs as suggested by the SGX Nifty early in the morning. During the first half, market came off marginally but reversed from midway after partially filling up the opening gap. The buying momentum accelerated in the final hour of the session to reach yet another milestone of 15700. Eventually the weekly expiry panned out tad below this by marking daily gains over seven tenths of a percent.

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 immediate resistance and now this level comes at 15800. On the flipside, 15600 would be seen as intraday support and any sustainable move below this point would trigger some mild corrective move towards 15525 – 15450. Only a handful of index heavyweights are giving some notable moves, otherwise the real action still continues in the broader end of the spectrum. Stock from the cash segment are literally roaring and hence it’s advisable to stick to this approach.

.We reiterate when market moves in such typical manner, it’s better not to get complacent and one should take one step at a time. Also, it would be a prudent strategy to avoid aggressive leveraged bets (especially overnight)because any in between hiccup may spoil your short term trading journey

Nifty Daily Chart

Nifty Bank Outlook - (35649)

We started the weekly expiry day on a cheerful note tad above 35500 mark but due to lack of momentum traded in a narrow range. As we approached latter half of the day, the index witnessed some fresh buying interest to surpass recent highs of 35713; however, this was just a formality as index cooled off a bit after that. Eventually, we concluded second consecutive session in green with the gain of almost eighth tenth of a percent.

As far as technical chart structure is concerned; the overall picture still looks same as we haven’t see an major price action recently. However, the banking index have been slowly and steadily inching towards the next target of 36400-36500. As mentioned previously, the individual counters have been showing mixed activity and hence, we would advised to watchful before initiating any aggressive directional bets in this basket. At this point in time, we maintain our optimistic stance in this space but would advised avoiding any leveraged positions until we see relevant momentum attracting the market.

Nifty Bank Daily Chart

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