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Outlook for Nifty 50 (17691.25)

* Nifty maintained its buoyancy and inched to a newer high of 17947.65 in September month. The bias was positive from the beginning however profit taking in the final week trimmed the gains to settle at 17618.15; up by 2.84%.

* Almost all the sectors contributed to the rally wherein noticeable buying in metal and realty pack outshined the others.

* Nifty has been trading in a broadening formation while holding above the support zone of short term moving average( 20 EMA). We recommend continuing with a positive bias and maintaining focus on stock selection based on themes that are playing out well. Needless to say, volatility will remain high with the beginning of the earnings season so participants should maintain extra caution with overnight leveraged positions and prefer hedged trades.

Support 17,500/17,300/17,000 Resistance 17,900/18,000/18,200

Outlook for Bank Nifty (37579.65)

* BankNifty traded in tandem with the benchmark index and extended the prevailing uptrend. It finally settled at 37425.10; up by 2.75%.

* Both PSU and private banking pack witnessed noticeable traction wherein the stocks from the PSU pack posted strong recovery with a significant surge in volumes.

* Though the banking index has reached its record high, it is lacking decisiveness at a higher level due to prevailing consolidation in the private banking majors. We feel participants should opt for a stock-specific approach and focus on stocks like ICICI Bank, Axis Bank, HDFC Bank, Kotak Bank, SBI and Federal Bank for accumulation on dips.

Support 37,200/36,900/36,500 Resistance 38,150/38,500/39,000

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