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Sensex (60079) / Nifty (17855)

Nifty started the day marginally positive and traded in a range for the first couple of hours. However, the index then breached the support of 17800 which led to a sell-off and it even entered sub 17600 zone to mark a low of 17576. But it was not over yet, we witnessed sharp pullback from that low in the last hour of the trade and the index trimmed some of the losses to end with a cut of six-tenths of a percent around 17750.

k - (37945) Once again market had a good positive start and in tandem with our benchmark, the banking index too opened higher. In the initial trades, BANKNIFTY made a new high of 38377.25 but failed to sustain at higher levels. In fact, the selling reinforced as the day progressed and before anyone could realise, banking index was off more than 1000 points from the morning’s high. Things did not look good at one point but fortunately for bulls, the buying re-emerged at lower levels in the heavyweight banking names which resulted in a sharp uptick in the last hour of the session. In this process, BANKNIFTY managed to recover a fair bit of ground to eventually end the session with slightly over half a percent loss. Monday’s BANKNIFTY’s close was encouraging as it closed above 38000 mark. Key Levels Support 1 – 37600 Resistance 1 – 38300 Support 2 – 37300 Resistance 2 – 38500 Exhibit 2: Nifty Bank Daily Chart Sensex (59668) / Nifty (17749) Nifty started the day marginally positive and traded in a range for the first couple of hours. However, the index then breached the support of 17800 which led to a sell-off and it even entered sub 17600 zone to mark a low of 17576. But it was not over yet, we witnessed sharp pullback from that low in the last hour of the trade and the index trimmed some of the losses to end with a cut of six-tenths of a percent around 17750. I

Traders are also advised to keep a tab on the INDIA VIX which has consolidated in the last couple of months. It is now trading around the higher end of the range and if this rises further, then it could lead to some uncertainty amongst market participants. The thematic rotation continues in our markets and yesterday it was the turn of PSU stocks where we witnessed good buying interest. Some of the Pharma names too showed signs of pullback from their supports. Hence, we continue with our advice to look for such pockets which could provide good trading opportunities and keep booking timely profits as well.

Nifty Daily Chart

Nifty Bank Outlook - (38171)

Once again market had a good positive start and in tandem with our benchmark, the banking index too opened higher. In the initial trades, BANKNIFTY made a new high of 38377.25 but failed to sustain at higher levels. In fact, the selling reinforced as the day progressed and before anyone could realise, banking index was off more than 1000 points from the morning’s high. Things did not look good at one point but fortunately for bulls, the buying re-emerged at lower levels in the heavyweight banking names which resulted in a sharp uptick in the last hour of the session. In this process, BANKNIFTY managed to recover a fair bit of ground to eventually end the session with slightly over half a percent loss. Monday’s BANKNIFTY’s close was encouraging as it closed above 38000 mark

However yesterday it again failed to live up to its expectations. The kind of wild swings we witnessed yesterday, it would be very interesting to see how it behaves one day ahead of the monthly expiry. Since IT has started to see some decent profit booking in last couple of sessions, all eyes on this heavyweight basket. For the coming session, 38300 – 38500 remains to be sturdy wall whereas on the flipside, 37600 followed by 37300 are the levels to watch out for.

Nifty Bank Daily Chart

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