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Sensex (62678) / Nifty (18660)

Monday’s smart recovery was followed by a tentative start yesterday despite favorable global cues. Post the initial hour, the bulls took it from where they had left on Monday. The buying resumed in some of the heavyweights and then Metal stocks joined hands, courtesy to COVID curbs easing in China. During the remaining part of the session, we witnessed a steady up move to reclaim the 18100 mark on a closing basis by adding more than six tenths of a percent to the bulls’ kitty.

In last couple of sessions, our markets have managed to recover fair bit of lost ground. Importantly, a close above 18050 – 18100 is a sign of relief and the early indication of completing the recent price correction. However, if the immediate corrective trend has to negate, Nifty will have to go past the key level of 18300 on a sustainable basis. Until then we are still not completely out of the woods yet. For the coming session, 18200 followed by 18300 would be seen as immediate hurdles, whereas on the flipside, 18000 – 17900 now becomes a sacrosanct support zone. Traders are advised to stay positive but at the same time, it’s advisable not get too complacent and should continue to keep a regular tab on global developments.

Nifty Bank Outlook (43219)

Following the positive momentum from the previous session, Bank Nifty started on a positive note however there was some profit booking that resulted some dip during the first hour. For the major part prices remained within a range and with buying in the penultimate hours price ended near the opening levels with gains just above half a percent to end at 42860.

The initial dip towards 50 SMA got bought into and prices have ended tad below the 20 EMA. It was a range-bound session for the bank index and the real action continued in the individual stock front. Since the undertone remains bullish, traders should continue with buying on dips strategy along with focusing on individual counters that may continue to outshine ahead of monthly expiry. As far as levels are concerned, 42300 - 42000 remains a strong support zone whereas 43200 - 43600 is seen as an immediate resistance zone.

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