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Sensex (52770) / Nifty (15812)

Since last few days global markets have become a spoilsport and yesterday, the gap up opening in our market was provided by the global optimism only to compensate the recent damage. After some initial pause, Nifty continued its northward march to first challenge the 15800 mark and then eventually to conquer it successfully. With this, Nifty reclaimed the first bullish territory beyond 15800 to make it a bit interesting for the forthcoming session.

After Monday’s hiccup, yesterday’s positive start beyond 15750 was a bit pleasant surprise for most of the participants. Fortunately it did not struggle there; in fact the bulls managed to extend this rally beyond a key barrier of 15800. Although, recently lot of such attempts have failed, we hope the benchmark index to surpass the sturdy wall of 15900 convincingly to reach the milestone of 16000. As we have been reiterating, if this achievement has to happen, the banking space needs to step in and yesterday lot of marquee names showed some promising signs. Let’s see how things pan out in the today’s session.

As far as supports are concerned, 15750 – 15700 are to be seen as immediate supports whereas the first sign of weakness would come only below 15600. Till then better to stay positive and focus on individual themes which are doing extremely well since last couple of days.

Nifty Daily Chart

Nifty Bank Outlook - (35674)

Post last two choppy sessions, we kick started the yesterday’s session on a cheerful note almost towards 35500 mark. We witnessed some hiccup in the initial hour of trade and then the banking index attracted fresh buying to reclaim 35700 plus levels. Finally, we concluded the day with the handsome gains of 1.35% to previous day’s close.

Yesterday’s recovery was indeed a sigh of relief for Bulls as index was hovering near the important make or break level of 35000 mark for last two trading sessions. Recently, due to absent of major triggers in the domestic market the global factors has been directing our market to great extend as the fall seen on the last weekly expiry day was mainly due to the nervousness seen across the globe. This fall was very well compensated by yesterday’s strong opening to reclaim 35700 mark. Considering yesterday’s strength, we expect continuation of this optimism towards the 35800-36000 and sustainable move beyond this shall open doors for next leg of rally towards life time high. Hence, we would advise traders to trade with a positive biasness and buy ATM call strikes in case of any intraday declines.

Nifty Bank Daily Chart

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