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Sensex (49734) / Nifty (14865)

Nifty started the day with a gap up above 14700 and then approached its resistance of 14750. It consolidated around that area for a couple of hours but eventually it surpassed the hurdle with the support of the banking heavyweights. It then gradually crept higher throughout the day and ended with gains of over 200 points at 14865.

Post a slow and gradual recovery from the recent lows, the index has finally breached its crucial hurdle of 14750 which was the trendline resistance of last two months corrective phase. This breakout eventually indicates a resumption of the broader uptrend as the upmove has also been supported by the banking space and the midcap universe. However, one should take into consideration that we have already seen an upmove of more than 700 points from the recent low and we have the monthly expiry day ahead. Thus, some volatility cannot be ruled out on the expiry day. While the broader picture looks good, day traders are advised to avoid aggressive positions and positional traders should look for buying opportunities on declines on lower time frame chart. The immediate support is now placed at 14700-14685 and resistance is seen around 14970-15000.

Nifty Daily Chart

Nifty Bank Outlook - (33723)

Tuesday’s decent move was followed by a good positive start despite SGX was indicating some sluggishness. Subsequently, the BANKNIFTY inched towards 33000 in the initial trades and then spent some time there. However, post the mid-session, we witnessed renewed buying interest across the banking space which continued for the remaining part of the session. With the help of higher highs and higher lows, the banking index ended the session with whopping 3% gains.

Since last couple of days, the BANKNIFTY looked a bit tentative around 32500 – 33000, but the way it surpassed this sturdy wall with some authority yesterday, it has certainly negated the cautious stance on the index. So now, so long as BANKNIFTY holds 33000 – 32500 – 32000, the trend is likely to remain in the upward direction. Honestly, in the recent past, market did not have clear direction and hence every now and then we are seeing the short term momentum changing. Since we need to respect certain key levels, after yesterday’s move the tide turns higher. On the upside, 34000 – 34400 would be the levels to watch for.

Nifty Bank Daily Chart

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