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Sensex (57552) / Nifty (17132)

Nifty started the day on a flat note but continued with the momentum and surpassed the 17000 mark for the first time. Minor intraday dips in Nifty were getting bought and it witnessed a sharp surge in the last hour of the trade to post gains of over 200 points and close well above 17100. The August month proved its historical significance and Nifty has posted gains of 8.69 percent

Finally 17000 is now a reality and it has been a remarkable journey for the benchmark to achieve this milestone. The move from 16000 to 17000 took just 19 sessions and the momentum has accelerated this week as we have seen back to back days with index posting gains of over 200 points. Although the banking index did not see a similar momentum yesterday, but there was a broad market participation with out performance from IT and the Metals pack.

The trend continues to be positive and hence we also continue with our optimistic approach for the index and advise traders to trade with a positive bias. The immediate supports for Nifty are placed around 16980 and 16920 while 17200 and 17300 would be the levels to watch on the upside.

Nifty Daily Chart

Nifty Bank Outlook - (36413)

Monday's spectacular rally was followed by a flat start yesterday owing to mixed global cues. In the subsequent hours, BANKNIFTY gradually moved higher to test the 36500 mark. However all of a sudden post the mid-session, the banking space witnessed a short stint of profit booking to slide marginally in the red. Fortunately there was no major damage done as we saw index stabilising and then giving a modest recovery towards the end to conclude the last session of August month on a positive note.

After March 03, 2021 the BANKNIFTY managed to close beyond 36300 for the first time during Monday's session. It was clearly a tailor-made situation for this index to lift the benchmark Nifty towards the new milestone of 17000. However it failed to do so as we saw very minimal contribution from this pack yesterday. In a way it was slightly disappointing for the bulls but never mind, it would be interesting to see how coming session pans out. The positioning of daily chart is quite tricky at this moment. We can see BANKNIFTY placed precisely at the higher end of 'Upward Sloping Channel'.

If we witness a decisive breakout beyond 36600, the banking index then would certainly head towards 37000 - 37300. However if it fails to do so and manages to close below 36200 - 36000, this would trigger some profit booking in this space.

Nifty Bank Daily Chart

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