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Sensex (65394) / Nifty (19384)

The Indian equity markets started the session on a mild note, but the benchmark index refrained from continuing its northward journey and witnessed a small bout of profit booking during the initial half of the session. The bulls recouped some of the losses from the intraday lows of 19400 but succumbed to the strong sell- off in the penultimate hours and slipped below Tuesday’s low. Amidst the whipsaw moves, the Nifty50 index concluded the day in negative terrain with a cut of 0.28 percent and settled below 19400 level.

Technically, the bulls failed to withhold the higher grounds, which led the market to slip slightly in the red, signifying a sense of timidity at upper levels. Though nothing significant has been changed on the technical structure as the overall posture remains upbeat. As far as levels are concerned, a decisive closure beyond the sturdy hurdle of 19500-19520 could only trigger fresh longs in the system. Whereas on the downside, 19300 is likely to provide a cushion from a short- term blip, while the sacrosanct support lies around the bullish gap of 19200-19235 in the comparable period.

Nifty Bank Outlook (44639)

BANKNIFTY started the day on a pleasant note in tandem with the benchmark index. For the most part of the day, we witnessed a consolidation by maintaining its positive posture. However, the tail end sell off which was mainly a technical adjustment of heavyweight counters, dragged the banking index around day's low. Eventually, the fourth straight session ended in the red by shedding quarter of a percent.

Barring last Thursday's session, the BANKNIFTY has been correcting gradually in the last six trading sessions. If we take a glance at the half hourly chart, we can now see an index approaching a very strong support zone of '89 EMA' placed around 44600 - 44540. In addition, the complex structure of the bullish 'Wolfe Wave' pattern is visible and prices have now reached the potential reversal zone. Hence, traders are advised to lighten up shorts around the mentioned support and in fact, this can be used to create fresh longs in this system. On the flipside, 44800 - 45000 - 45200 are the levels to watch out for.

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