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Sensex (57315) / Nifty (17073)

For the third consecutive session, our markets witnessed a gap up opening by a fair margin, owing to favourable cues from the global peers. Although there was not much activity seen post the head-start, Nifty managed to maintain its positive posture throughout the session. Eventually, Nifty ended the weekly expiry well above the 17050 mark. With this, the bulls added another seven tenths of a percent to their kitty to recoup all Monday’s losses.

Last three days’ recovery has been remarkable considering the nervousness we had early this week. Yesterday’s close 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. 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 session as well.

Nifty Daily Chart

Nifty Bank Outlook - (35191)

The bank nifty as well started with a gap up opening however on the weekly expiry we didn't see major traction and for the major part, it remained in a range. Eventually, during the last hour, the bank index slipped marginally lower and ended below the opening levels with gains of 0.46% at 35191.

Yesterday, we had mentioned a stiff resistance around the 35500 - 35750 zone, and after approaching the vicinity of this zone the bank index did see some tentativeness. This mentioned resistance is a confluence zone formed by a bearish gap and 200SMA. As mentioned higher, we have seen a bounce from the lower levels but comparably the bank index has lacked momentum. Now if the bulls have to regain strength then it needs to cross the mentioned zone with some authority. On the other hand, 35000 and 34700 can be taken as immediate support. We reiterate traders to have a stockspecific approach from this basket.

Nifty Bank Daily Chart

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