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Sensex (52553) / Nifty (15752)

Nifty started the day with a gap down owing to negative global cues. The banking heavyweights corrected sharply which led to negative biasness in both Nifty and Bank Nifty throughout the day. The benchmark ultimately ended the session around 15750 with a loss of over a percent.

Our markets had closed firmly on Friday and it seemed that the index was all set to march towards the 16000 mark. However, the global markets spoiled the sentiment and thus we had a gap down opening. To add to this, the banking space traded with a negative bias led by the heavyweight HDFC Bank post its quarterly numbers. However, although the indices were under pressure, the focus was on the broader markets where stock specific momentum was seen. With yesterday’s move, we are back into the consolidation phase with supports for Nifty placed at 15750 and 15630. On the flipside, 15850-15900 would be seen as immediate resistance which needs to be surpassed for a resumption of the momentum.

Till this volatility settles and the momentum resumes, traders are advised to focus on stock specific moves and avoid aggressive overnight positions.

Nifty Daily Chart

Nifty Bank Outlook - (35079)

The way we closed on Friday, the stage was very much set for a good up move this week. But there was always a fear of global uncertainty and we had mentioned a point also, if there is no aberration on the global front, BANKNIFTY was poised to surpass the sturdy wall of 36000. Unfortunately, the depressing cues from global peers led to a massive gap down opening in our market and within few minutes, the index was at 35000. There was some recovery seen after reaching there in the opening hour, but this eventually got sold into.

The BANKNIFTY ended the session tad above 35000 by shedding almost couple of percent from the Friday’s close. Taking a glance at the hourly chart, 34800 is to be considered as a ‘Make or Break level’. A sustainable breach of this support would reinforce the selling in the banking space. In this scenario, we may see retesting of 34600 – 34500 levels. Key indices are standing at crucial points now. A slight push in the downward direction from hereon will lead to short term correction in the market. Let’s see how things pan out; but one needs to be very light on positions and avoid any kind of undue risk at this moment. On the higher side, 35300 – 35500 would act as immediate hurdles.

Nifty Bank Daily Chart

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