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01-01-1970 12:00 AM | Source: Angel Broking Ltd
Nifty started the day on a positive note and marked a new high of 17438 - Angel One
News By Tags | #5948 #879

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Sensex (58247) / Nifty (17380)

Nifty started the day on a positive note and marked a new high of 17438. However, it failed to show a follow up move and gave up some of the gains to end below 17400.

Although we saw a new high in Nifty, the index traded within a narrow range throughout the day. In last few sessions, Nifty has traded within a range of 17250-17430 and as we approached the higher end of the range yesterday, we saw signs of fatigue at higher levels. The stock specific momentum continued where better trading opportunities are seen for day traders. Until we see a clear breakout from the range of 17250-17450, we continue with our advice for traders to avoid aggressive trades in index and rather focus on stock specific ideas. In last few day’s, the banking index too has seen a sideways move and looking at the lower time frame chart, we expect a breakout soon on either side which could then lead to momentum in the benchmark as well.

Hence, traders should keep a watch on the development there and we reiterate to have a thematic approach and be fussy in stock selection.

Nifty Daily Chart

 

Nifty Bank Outlook - (36613)

The banking index had a positive start in tandem with the benchmark. However after the initial head-start, the follow up move was once again missing. For the remaining part of the session, BANKNIFTY remained in a positive territory but it was more of a consolidation within a slender range.

Now if we look at the intraday time frame chart, we can see a range shrinking day by day. Generally when the consolidation price movement reached a converging point, the breakout becomes imminent on either side. So on the higher side, 36700 is the level to watch; whereas on the flipside, the lower end of this consolidation range is at 36300. Let’s see whether it really triggers real momentum outside this range or not.

Nifty Bank Daily Chart

 

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