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Sensex (48733) / Nifty (14678)

During the last week, our Markets started on Monday with a gap and this time it surprised pleasantly in the upward direction. Subsequently, the benchmark index consolidated within a range throughout the day by maintaining its positive posture. Amongst a good stock specific action, Nifty managed to reclaim the 14950 mark on the first day itself. Everything looked rosy and things were very much in place for a breakout from the recent congestion phase. However, all of a sudden the global markets looked a bit shaky and started correcting sharply from their recent highs. This had a rub off effect on our markets which dragged the index lower to conclude marginally inside the sub-14700 territory.

The weakness across the globe became the real spoilsport and did not let our markets go beyond the recent consolidation range. But we must also accept the fact that we have outperformed our global peers significantly as we did not fall to the tune of the global indices. At the end, we still remain directionless and completely clueless which way we are heading now. It would be wise to mention few key levels and keep a close track of it in the first half of the this week. As far as supports are concerned, 14540 followed by 14400 are to be seen as key levels. A sustainable move below the lower range would certainly dent the possibility of some positivity in the short term. On the flipside, 14750 – 14830 are to be seen as key hurdles. If we have to regain strength then Nifty needs to go beyond 14830 first.

Similar to the previous week, we witnessed ample of thematic moves playing out one after another. Only on Friday there was no clear winner and in fact, the broader market saw some decent correction, which is not an encouraging sign. We advise traders to keep a tab of all the above mentioned levels and meanwhile continue with a stock centric approach. Further, it’s advisable to stay light and avoid aggressive bets till the time global volatility subsides.

Nifty Daily Chart

Nifty Bank Outlook - (32170)

After a mid-week holiday, the Bank Nifty index started on Friday on a flat note and with gradual decline throughout the session ended with a loss of 0.87% at 32170

The May month has been lethargic so far as we have missed a trending move in this high beta tradable index. After making an intra-week high at 33297 the prices have slipped back towards the low so far of May month at 31900 levels. Going ahead, the bank index remains directionless however a break below 31900 may trigger some further weakness towards 31300 levels. On the flip side, 32600 - 32800 seems to be immediate resistance. While the heavyweights from this space lacked momentum during the week; good traction was visible in some PSU banks along with mid-sized private banks. Going ahead, traders should continue to have a stock-specific approach that are providing better trading opportunities.

Nifty Bank Daily Chart

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