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Sensex (55816) / Nifty (16642)

Last two days’ sluggish action was followed by a flat start in our market. During the initial trade, Nifty did dip below 16450 by a small margin. But bulls were not willing to let go this opportunity as we witnessed strong buying emerging at lower levels. As the day progressed, this momentum kept on accelerating to eventually conclude the session at the highest point of the day by pocketing nearly a percent gains.

Although we had mentioned buying after market entering a sacrosanct support zone of 16490-16360, most of the participants wouldn’t have expected for such broad based session. The way market maintained its posture throughout the session, it’s really remarkable especially when major global event as well as the monthly expiry is lined up. Technically we have managed to close on a strong note and if there is no aberration from the event, we are good to go towards 16750 first or may be beyond that as well. On the flipside, 16550 - 16440 are to be seen as immediate supports for the benchmark index. All eyes would be on how markets react post the Fed policy outcome and hopefully it doesn’t dent the recent optimism in our market. The ideal strategy would be to stay upbeat as long as key supports are not violated.

Nifty Daily Chart

Nifty Bank Outlook - (36784)

Yesterday, our markets started on a mild negative note and there was further weakness in the initial few minutes. The sentiments got quickly changed after that as there was strong buying seen that sustained throughout the session to eventually end with gains of a percent at 36783.

Despite the dull sessions seen during the previous two days, we remained upbeat on this basket and suggested the weakness as just a correction of the primary upmove. On the daily chart, prices have formed a good base around the 200SMA and we are witnessing a strong bullish candle on the same. The way we saw traction in individual counters from this basket definitely indicates that the bullish momentum has resumed however post the key FOMC meet it would be crucial to see how the market reacts also it's the monthly expiry secession and hence one needs to avoid being complacent. We sense major action is likely to be seen outside the index and traders should focus on outperforming opportunities from this basket. As far as levels are concerned, immediate support is seen at 36400 – 36250 levels whereas 37000 – 37280 is immediate resistance.

Nifty Bank Daily Chart

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