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Sensex (58491) / Nifty (17397)

After few days’ of hammering, we were seeing some relief across the globe early in the morning. In line with this, our markets too opened slightly higher. However post the initial hour, the selling once again reinforced across the board, resulted in a sharp decline towards the 17350 mark. Fortunately, the bears exhausted a bit there and its counterparty took the charge from thereon to pull the markets higher. In fact, the buying momentum accelerated as the day progressed to eventually conclude the session with nearly a percent gains by reclaiming 17550

n last couple of sessions, Nifty had corrected nearly 450 points and hence, it was a bit oversold. Importantly, it reached its key support zone around 17350 – 17250 which coincided with the ’89-EMA’ on hourly chart. Hence with global markets rebounding sharply, it was the apt point from where market can see some recovery. But we must accept the fact that although the recovery was evident, it has over surpassed our projected levels of 17500 by a fair margin. Nevertheless, we still believe that this is merely a bounce back and we are not completely out of the woods yet. For the coming session, 17600 – 17650 are to be seen as immediate hurdles; whereas on the flipside, the weakness will resume once we start staying below 17450.

Nifty Daily Chart

Nifty Bank Outlook - (37146)

We had a slightly positive start for the day and then index witnessed follow-up selling to drag banking index below 36550 in the first two hour of trade. However, smart recovering was seen to wipe-off of the losses and entered into positive trajectory to reclaim 37300 plus levels. Eventually, we concluded yet another volatile session tad above 37200 with gains of 0.24%.

As mentioned in our previous article, the banking space finally come off its slumber phrase but the kind of follow-up move was expected was really missing. yesterday, we saw sharp declined below the important support zone around 37000 mark but the way it recovered from the 20 DEMA and managed to reclaim 37200 on the closing was remarkable. However, until we don’t see a follow-up move beyond 37600-37800, we are not completely out of the woods. .

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