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Sensex (58723) / Nifty (17519)

We had a flat opening today in line with mixed global cues. Unlike previous sessions, this time Nifty picked up the momentum right from the word go and as the day progressed, it just kept accelerating. In this course of action, Nifty went on to reach yet another milestone of 17500.

Since last few days, Nifty was trapped in a small range and finally it managed to find some momentum today. The trend is extremely strong but honestly, the current move is not giving us comfort at all. We reiterate that when things start to look hunky dory and there are no signs of correction, market surprises. Yes, it’s difficult to predict the precise time, but it’s always better safe than sorry. As of now, we are not advising to short but at least one can choose to keep booking profits on a regular interval and stay light on positions. One can still continue with a stock centric approach by following strict stop losses; because they are still providing better trading opportunities. Now as far as immediate levels are concerned, 17450 – 17350 are to be seen as key supports. Since we are trading in an uncharted territory, it’s difficult to project the upside levels and hence, just for understanding, every 100 points psychological level can be considered as crucial points. Today, fortunately banking did extremely well but it is still not completely out of the congestion zone which is very important for the market. Let’s see if it manages to have some follow up or it continues with its recent trend of being a one day wonder.

Nifty Daily Chart

Nifty Bank Outlook - (36613)

Post the recent consolidation phase, the banking index showed a positive momentum in yesterday’s session and managed to end well above 36800.

The banking space has relatively underperformed the markets so far and after some days of consolidation, this sector witnessed some momentum today. The index has managed to hold above its ‘20 DEMA’ in last few days and if the index manages to show a follow up move above 37000, then we could see this sector performing in the near term. In case this sector witnesses buying interest, then one should focus on the PSU banking stocks which could provide good trading opportunities. As far as levels are concerned, 36600 and 36400 are to be seen as key supports; whereas on the flipside, 37200 and 37550 will be seen as intraday hurdles.

Nifty Bank Daily Chart

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