IGI Logo

Sensex (57124) / Nifty (17004)

Post the sharp sell-off on Monday, market surprised everyone in the following sessions by giving four back to back gap up opening to surpass few key hurdles. Our markets managed to recoup all losses in this course of action to eventually conclude the week tad above 17000.

If we refer to our recent commentary, we have been continuously maintaining our cautious stance from 18000 plus levels. This certainly played out well for us as Nifty finally entered our projected target zone of 16500 – 16200. Although we were inclined towards more downside levels, we had to change our stance a bit from Tuesday onwards. This was mainly due to some extreme oversold condition of individual stocks; we started looking for some positive stock specific trades. Nifty maintaining its position beyond 17000 is an indication that the bears have lost their steam; because we not only surpassed the downside gap area created on Monday but also went on to negate the breakdown. Now we are in a neutral zone from the bearish trend and if bulls have to regain the strength, 17200 – 17300 needs to be surpassed with some authority. This development will confirm the completion of recent corrective phase and the bulls would probably be back at a driver’s seat thereafter. If this has to happen, the banking needs to step up which is slightly lagging behind in the recovery. Till then we are still not completely out of the woods.

Let’s see how things pan out going ahead as we are inching closer to the calendar year end. Traders are advised to stick to the stock centric approach because the real action lies there and we expect it to continue in coming sessions as well.

Nifty Daily Chart

Nifty Bank Outlook - (34857)

NIFTY BANK is hovering near the crucial resistance zone of the unfilled gap along with the 200 DEMA indicating a nearby hurdle for the index. The index is trading in a bearish cycle of lower lows lower highs and the view remains the same until 35500- 36000 is not breached in a decisive manner.

Although, as the week went by the index has seen some resurgence from the lower Bollinger band that nearly coincides with the previous swing low of June’21, which is a crucial support zone to watch out for. On technical parameters, the MACD is on the downward channel and the 14-day RSI is nearing the oversold region, showcasing the downward trend to remain intact. Hence, till the 36000 mark remains unattainable the view remains to be on the downside for the immediate target of 34000 that is the previous swing low.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer