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Sensex (50638) / Nifty (15208)

Nifty started the day on a positive note and it initially seemed that the index was all set to surpass the 15300 mark and continue the rally. However, the banking space did not extend the support due to which the Nifty consolidated within a narrow range and ended the day with negligible gains.

It was a day of consolidation for our market as we saw some tentativeness at higher levels. However, there was no selling pressure as well and thus, the near term trend continues to be positive. Hence, traders should continue to trade with a positive bias and look for buying opportunities on intraday declines. The intraday supports for the index are placed around 15165 and 15135 whereas resistances are around 15300 and 15335. We expect the market to gradually move higher and surpass the resistances to march toward new highs in the near term. Hence, buying on dips and having stock specific trades remains a pragmatic approach.

Nifty Daily Chart

Nifty Bank Outlook - (34662)

Yesterday, too the banking index started the day on a positive note in tandem with the benchmark. However it was merely a formality as we saw BNAKNIFTY not only erasing early gains but also slipped well inside the negative territory. During the remaining part of the day, index remained under pressure with some hint of recovery towards the end. Due to this, the daily loss was restricted to 0.81% only.

The magnitude at which the BANKNIFTY took off on Friday to surpass the 34000 mark convincingly, we should have moved towards 36000 by now. But clearly there is something that is holding it back, may be because we are approaching the monthly expiry. Since the follow up buying is missing, 35000 - 35200 are acting as stiff hurdles; whereas the overall strength is not letting it fall below key supports as well. Hence, we are seeing index trapped in a range where the lower side support is visible around 34400 - 34000. Traders are still advised to remain upbeat as long as we trade convincingly above 34000 and on the higher side, a breakout beyond the higher range should trigger some momentum.

Nifty Bank Daily Chart

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