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Sensex (59885) / Nifty (17823)

Our markets had a remarkable comeback in last four sessions as we not only managed to recover from lows but also went on to clock fresh highs. We have clearly outperformed the global peers because despite a relief move in last two days, they are still trading well below their highs. Honestly speaking, the recovery beyond 17600 has certainly surprised us but eventually market is superior. Ideally, after market surpassing previous highs, our cautious stance should have been negated; but there are a few time-wise projections as well as negative divergence in ‘RSI-Smoothened’ oscillator, clearly holding us back. Hence we would keep reassessing the situation closely for next few days. As far as levels are concerned, every 100 points psychological level from here would be seen as immediate resistance i.e. 17900 – 18000. On the flipside, 17700 – 17650 are to be seen as key supports. We advise traders to continue with a stock specific approach but keep booking timely profits as well and also avoid carrying aggressive overnight bets

Meanwhile all eyes on global markets and on how banking index move ahead from here on which could probably decide the next path of action for markets

Nifty Daily Chart

Nifty Bank Outlook - (37772)

We started-off the week with the downside gap tad below 37400 and witnessed decent selling pressure for straight three sessions; wherein, the banking index almost tested 36500 and attempt of any recovery was being sold off. The weekly expiry day turned to be a relief day for bulls, as we witnessed V-shaped recovery to recoup all the losses during the initial part of the week to reclaim 37800. On Friday, we saw some strength in the early morning trade to surpass 38100 but in absence of follow-up buying index consolidated and concluded the week almost flat around 37800 zone. After seeing the closing below the support zone around 37000 on Wednesday, things didn’t look appealing. But, the kind of comeback we saw on Thursday was indeed remarkable, amidst recovery in the global market. At current juncture, it would be interesting to see how things pan out as any sustainable move beyond 38000-38200 shall propel fresh buying interest. On the downside, the immediate support is placed around 37200-37300 zone. For positional traders, we won’t advise being carried away as the risk reward ratio at this point in time is not favorable, one can opt for stock specific trade for the time being.

Nifty Bank Daily Chart

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