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Sensex (52861) / Nifty (15818)

Our markets started the day on a flat note as there was no major trigger from the global peers. Subsequently, the buying momentum accelerated in some of the financial stocks, which pushed the index higher towards the record high. There were couple of attempts made post the midsession to register a new high; but this again failed as we saw a complete nosedive at the stroke of the penultimate hour. This sudden profit booking pared down all gains to conclude the session with nominal loss.

Yesterday, the kind of lead our markets took in the first half (courtesy to heavyweight financial stocks), the set up was ideal to post a new high. Nobody knows why market suddenly becomes so nervous when it enters the 15900 zone. In the process, the daily candle of Nifty forms a small body which is a sign of uncertainty. But fortunately the heavyweight banking space still holds its positive posture and this certainly bodes well for the bulls. Going ahead, this basket remains to be a decider and we reiterate if Nifty has to reach the millstone of 16000, we need to have follow up buying in banking constituents.

As far as levels are concerned for Nifty, 15750 – 15700 is to be seen as a key support zone and on the higher side, 15900 remains a sturdy wall. Since last few days, individual themes have again started to perform well and hence, traders are advised to stick to stock centric approach; but at the same time, avoid being complacent.

Nifty Daily Chart

Nifty Bank Outlook - (35579)

Yesterday, Bank Nifty started on a flat note however the positive momentum from the previous session pushed the bank index towards the 35800 levels. Subsequently, in the last hour, some profit booking was seen to eventually end with gains of a percent at 35579.

After a very long time, we have seen a clear outperformance by the banking space and even though the benchmark ended with minor loss the bank index ended with handsome gains. Now with yesterday's move, we are witnessing a trendline breakout however with the fag end profit-booking it just missed to cross above the June swing high of 35810. Next few sessions will be crucial as if the trend line break out holds, and if we manage to break above the mentioned swing high, the banking space can single-handedly push the benchmark index above the 16000 levels. In such a scenario, traders are advised to focus on a stock-specific approach within the basket. As far as levels are concerned, immediate resistance is at 35810 - 36000 whereas support is at 35160 and 35000 levels.

Nifty Bank Daily Chart

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