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Sensex (58803) / Nifty (17539)

The way we hastened beyond 17700 on Tuesday, it appeared as if Nifty is going to challenge the 18000 mark soon. However, after a mid-week holiday, we started the proceedings on a sloppy note and then markets remained sideways for the remaining part for the week to conclude around 17550 mark.

It was certainly not an easy-going week for market participants. Week on week, we may not see any notable change, but it certainly does not portray the real picture what market had undergone especially in the first half of the week. From a technical standpoint, the initial move towards 17166 was a part of ‘Price-wise correction’ which completed its 50% retracement of the previous up move from 16438 to 17992. Now, what we witnessed in last couple of days can be interpreted as a ‘Time-wise correction’ which is also an essential part of market behavior. Hence, 17200 – 17000 has now become a sacrosanct zone and any decline in the forthcoming week should ideally be utilized as a buying opportunity. Before this, 17400 is also to be seen as immediate support.

Nifty Bank Outlook (39421)

BANKNIFTY index has outperformed the benchmark index in the truncated week and maintained a positive stature for the consecutive week. There have been strong whipsaw moves throughout, wherein the index concluded the week with gains of over a percent and settled a tad above the 39400 level.

On the technical aspect, the banking index has maintained its uptrend as it hovers well above all its major exponential moving averages on the daily chart. However, tentativeness was evident at the higher grounds of the 39500-39700 odd zone, suggesting it to be a major hurdle. Also, the ‘Doji’ formation in the last trading session certainly indicates indecisiveness. At present, the 38900-39000 zone is likely to cushion any short-term blip, while the unfilled gap of 38470-38400 is likely to act as the sheet anchor. While on the higher end, a decisive breach above the 39700 zone could only trigger fresh longs in the counter; till then, a range-bound move could be seen in the near period.

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