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Sensex (49766) / Nifty (14895)

Nifty started the session with a gap up around the 15000 mark. It traded above that level for the first half and hour, but it then corrected sharply to mark a low of 14815. The index then recovered from the lows but no follow up buying was seen and it ended the expiry day on a flat note.

The index reclaimed the 15000 mark at opening after one and a half month. However, as the index have already seen a sharp upmove in last few sessions, the momentum readings on the lower time frame chart reached overbought zone and thus, we witnessed profit booking which weighed down heavily around this psychological mark of 15000. Since the Nifty has given a breakout from a Channel on Wednesday, the short term trend remains up but some bouts of corrections can be there due to overbought set ups. On dips, the immediate support is placed around the hourly 20 EMA at 14790 while the resistance is around the 15000 mark. A sustained move above the 15000 level could then lead the index towards its next zone of 15150.

Nifty Daily Chart

Nifty Bank Outlook - (33714)

Similar to previous sessions, yesterday too market had a good head start to the expiry session. In the initial trades, the BANKNIFTY went on to surpass the 34000 mark after nearly five weeks. However, all of a sudden the banking index took a complete nosedive which was mainly on the back of strong profit booking seen in most of the heavyweight constituents. Fortunately, the damage was restricted around the rock solid support zone of 33200 – 33000 and hence, throughout the remaining part of the day, we witnessed some recovery along with higher volatility. Eventually, the index ended the session with a negligible loss.

Now a days it’s very rare to see trended move consecutively on multiple days. In between we tend to see some kind pause or move in the opposite direction. Since BANKNIFTY has already surpassed the crucial zone of 32500 – 33000, the short term trend remains bullish till the time it’s not violated now. Till then intraday declines are likely to get bought into as it did yesterday. For the coming session, the intraday supports can be seen at 33500 – 33200; whereas on the higher side, 34000 – 34400 are the immediate levels to watch out for. Traders are advised take one step at a time and keep reassessing overall developments in the market.

Nifty Bank Daily Chart

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