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07-11-2023 11:52 AM | Source: Angel One Ltd
As far as levels are concerned, the bullish gap of 19200-19235 is likely to act as a strong support zone Says Sameet Chavan, Angel One Ltd
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Sensex (65344) / Nifty (19356)

Our domestic market subsided the bleak indication of the Gift Nifty in the early trades and started the session with a decent gap up. The heavyweight major Reliance led to a cheer in the market, leading the benchmark index to inch higher and recoup some losses during the first half. However, there has not been strong participation from other heavyweights resulting in a slender range- bound move for the Nifty50, which eventually settled with a mere gain of 0.12 percent, a tad above 19350 zone. Technically, there have been no significant changes in the index, as it settled near the previous day’s closure. As we alluded to in our last commentary on indices to consolidate considering the overbought conditions, which certainly align with the current market movement. Also, the inside bar formation in the daily time frame shows a sense of timidity at the current juncture, wherein both bulls and bears lack conviction. As far as levels are concerned, the bullish gap of 19200-19235 is likely to act as a strong support zone, and till the index sustains above the same, one needs to utilize the dip. On the higher front, a sustainable breakthrough beyond the immediate resistance of 19500-19525 could only bring the cheer back to the trader’s fraternity.

Exhibit 1: Nifty Daily Chart

 

Nifty Bank Outlook (44861)

BANKNIFTY started the week marginally in green and showed some encouraging signs in the initial trades. However, as the day progressed, some of the banking counters started sulking a bit which was then followed by lethargic moves throughout the remaining part of the session. Eventually, the index ended the session with negligible losses. Since the last 4 - 5 sessions, the banking index once again lost its sheen and it was one of the major draggers following the other heavyweight pocket, IT. Directionally, we continue to remain upbeat on this space and construe this as a healthy development. As far as levels are concerned, 44700 - 44500 should provide some cushion in case of intraday weakness. On the flipside, 45000 - 45300 remains an immediate barrier for the index. Traders are advised to stick to a buy on decline strategy as the major trend continues to remain bullish.

Exhibit 2: Nifty Bank Daily Chart

 

 

 

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