IGI Logo

Sensex (61764) / Nifty (18264)

Markets had an unpleasant session on Friday as we witnessed Nifty sliding below 18100; courtesy to massive sell off in BFSI space led by HDFC twins. Fortunately, global markets witnessed massive rally on Friday’s night to cheer up the mood across the globe. Taking cues from there, our domestic markets started the week on a positive note and as the day progressed, the momentum kept on accelerating to not only recoup entire losses but also closed at the highest point of the calendar year.

If we refer to our previous commentary, we had clearly stated that the drop on previous session was mainly to do with some technical adjustments. Although, it had dented the sentiments, the inherent strength in our market remains untouched. With yesterday’s Vshaped recovery, this point is clearly validated and hence, we expect our market to continue with their outperformance. Now, we are back to challenge the sturdy wall of 18250 – 18300. Considering the overall momentum, the possibility of a breakout is high and then we can certainly march towards the next cluster of 18350 – 18500.

Nifty Bank Outlook (43284)

The Banking index has started the session on a strong note taking cues from the positive development in the global markets over the weekend. The index recouped the lost grounds from the previous session with the buying emergence in the heavyweights and procured nearly 1.50 percent to settle a tad below the 43300 level.

The ongoing price action construes a sturdy setup for the index and it would be interesting to watch how things pan out in the next couple of trading sessions. At present, the 43000 zone should cushion any blip, while the strong support lies around the 42600- 42700 zone. On the flip side, until we surpass the immediate swing high of 43750, the index is expected to hustle within the mentioned range. Though the sentiments remain buoyant till we sustain above the mentioned crucial support and it is highly anticipated that the dip should augur well for the bulls. However, the continuation could be seen only if we surpass the mentioned resistance zone; until then, one should continue with the buy on decline approach in the index.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/
SEBI Regn. No.: INZ000161534

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer