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Sensex (59757) / Nifty (17737)

Our market has seen an optimistic start with a decent gap up on the expiry trade. But soon after, the index gradually descended towards the 17650 zone until the bulls retaliated from the support zone at the fag end and pared down the losses to eventually enter inside the positive terrain. With such a sharp recovery, Nifty managed to defend 17700 with some authority by adding nearly half a percent to the previous close.

On the technical perspective, the crucial support of the 17650 was firmly safeguarded, implying the resilience of the technical support. However, some tentativeness was evident on the higher grounds as the index struggled to breach the 17800 zone in the entire week. In terms of technical levels, any breach above the mentioned resistance could surge the market toward the 18000 zone in a comparable period (which we believe should happen anytime soon). At the same time, on the lower end, the 17650-17600 could be seen as immediate support, followed by the sacrosanct support around the 17500 mark.

Nifty Bank Outlook (41299)

Yesterday too BANKNIFTY had a pleasant start along with the benchmark. But once again we failed to capitalise on the early morning lead. The BANKNIFTY kept sulking throughout the session as it kept sliding gradually after testing the hurdle around 41500. Due to some modest recovery towards the end, the BANKNIFTY managed to close with slightly over four tenths of a percent gains.

It seems the banking index is taking a breather before unfolding the next leg of the rally to enter the uncharted terrain. Although we are showing some signs of fatigue at higher levels, we continue to remain upbeat and expect the momentum to resume soon. As far as levels are concerned, 41000 - 40700 is likely to provide cushion to any correction; whereas on the flipside, it would be a challenging task to surpass the stiff hurdles around 41600 - 41800.

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