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Sensex (52300) / Nifty (15738)

Post the volatility ahead of the weekly expiry session on Wednesday, the indices showed some pullback in yesterday’s session and managed to end the day tad below 15750 with gains of over 100 points.

Nifty started the day on a positive note and consolidated within a range with a positive bias. The index retraced the previous day’s losses and managed to end around 15750. The market breadth was again positive as the mid-cap and the small-cap space outperformed the benchmark. The support for Nifty is placed in 15600-15550 range while resistance is seen around 15800 mark. A breakout above 15800 would then result into a continuation of the uptrend towards 16000 and beyond while a breach below the mentioned support would apply brakes to the optimism. Thus, it would be interesting to see how the weekly close pans out today. Although, a lot of stock specific activity could be seen and hence, traders should look to focus on potential outperforming stocks from a near term perspective.

Nifty Daily Chart

Nifty Bank Outlook - (35131)

We had a flat to positive start yesterday after Wednesday’s shakeout from the higher level. This was followed by some long consolidation before it started moving higher at the stroke of the penultimate hour. Due to this late surge in some of the heavyweights, the BANKNIFTY reclaimed the 35000 mark convincingly by adding nearly a percent gains.

Yesterday, it was good to see the weakest link financial space outperforming the benchmark index. However, it is still not completely out of the woods yet. If BANKNIFTY has to regain the real strength, it needs to surpass the crucial intraday swing high of 35400. If this happens then Wednesday’s decline should be considered a running correction and going forward, 35800 – 36000 are the levels to watch out for. If it fails to do so and starts correcting below 34800, this would be a sign of weakness. Hence, it is advisable to keep a tab on these mentioned levels and trade accordingly.

Nifty Bank Daily Chart

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