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Sensex (59299) / Nifty (17691)

Friday’s strong recovery in US bourses provided some relief in our markets as well. We started the week with a decent bump up and as the day progressed, the momentum kept accelerating in the upward direction. Within first couple of hours, Nifty managed to reclaim the 15700 mark which then decided to consolidate around it for the remainder of the session. Eventually the inaugural day of the week ended with nearly a percent gains.

It was certainly a good start for the week after previous week’s modest correction. Although most of the Asian peers were trading in red yesterday, we outperformed throughout the day. But there is nothing to be overjoyed for as we are still not completely out of the woods. Next couple of days would be crucial from bulls’ point of view; because if this recovery extends further and we manage to stay beyond 17800 – 17900, we would see tightening of the grip from the optimistic traders

For the coming session, 17750 – 17800 are the levels to watch out for. If we fail to continue this momentum and again breaks below 17600 – 17550, the bears will be back in action. We continue to remain on the cautious side and advise against creating aggressive bets for a while. Meanwhile, the stock specific action continues in our market and hence, it would certainly be advisable to capitalize on this.

Nifty Daily Chart

Nifty Bank Outlook - (37580)

Post Friday’s recovery, we started-off the week on a cheerful note and saw smart recovery to extend the upmove beyond 37650. As we progressed, the banking index consolidated in the narrow range to eventually conclude the session with the gains of almost a percent.

Last week, we saw sharp fall from the all time highs of 38377.25 to 36876.83; however, fortunately decent respite was observed on Friday’s session to conclude the week slightly above 20 DEMA which has been acting as a demand zone lately. This was followed by gap-up opening and fresh buying interest yesterday, which is indeed an encouraging sign for Bulls. As far as levels are concerned, 37300-37400 is an immediate support zone; whereas, the resistance is now placed around 38000 mark.

Nifty Bank Daily Chart

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