IGI Logo

Sensex (59126) / Nifty (17618)

Nifty started the expiry session on a flat note and traded within a narrow range till noon. However, we witnessed a gradual correction in the later half and the index ended tad above 17600 with a cut of more than half a percent.

Post a minor pullback from the swing low of 17575, Nifty did not surpass the level of 17800. The earlier support of 17800 has now turned into a resistance and Nifty needs to surpass the same for a resumption of the momentum. The index corrected gradually in the later half yesterday and is back near the support level. As we mentioned earlier, if Nifty breaks the support of 15575-15550, then we could see a deeper price wise correction this time and hence, traders should lighten up and avoid aggressive positions in case such a scenario unfolds in the coming session. Below the mentioned support range, next levels to watch would be 17470 and 17325. Traders are advised to be stock specific in intraday trades and trade with proper risk management.

Nifty Daily Chart

Nifty Bank Outlook - (37425)

We had a sluggish opening yesterday in BANKNIFTY as indicated by the SGX Nifty early in the morning. However it stabilised in the initial hour and then recovered gradually in the first half. Post the midsession, the selling reappeared in some of the banking heavyweights, which dragged the index lower to conclude with over eight tenths of percent loss. We saw some encouraging signs towards the fag end last week, but the banking index once again started disappointing. It’s failure to sustain above 38000 does not bode well for the bulls; because twice in last couple of weeks, we are seeing false breakout at record highs in this high beta index. From an optimist point of view, it is important for BANKNIFTY to reclaim its position above 38000 – 38300 in order gain some strength; whereas on the flipside, bears will keep a close eye on 37300 – 37000 territory. The moment we see it sliding below the lower range, we would see weakness coming back into the banking basket.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/Downloads/ARQ-Disclaimer-Note.pdf SEBI Registration number is INH000000164

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer