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Sensex (57108) / Nifty (17007)

The Indian equity market started the day on a mild note amid mixed global cues, wherein the benchmark index seemed a bit nervous from the early trades and slipped into the negative terrain. However, the dip augured well for the bulls, and they made a modest recovery by the mid-session. But by the fag end, the correction triggered again resulting in a tentative closure with a mere loss of 0.05 percent and settled a tad above the 17000 mark.

We allude to the previous commentary on the benchmark index entering the cluster of key moving averages, i.e. 89-day EMA and 200-day SMA. Technically, the support of 17000-16800 shows their resilience as bulls retaliate from the same during intraday declines. As long as the mentioned zone is decisively held back by the bulls, one need not worry about further correction. Also, since the markets are extremely oversold, we advocate reducing short positions. Meanwhile, the intraday hurdles are seen around 17100 – 17200. Only a sustainable move beyond 17200 would trigger a sharp short covering rally in the market. Until then, the broad range (16800 – 17200) continues with a lot of indecisive swings on both sides.

Nifty Bank Outlook (38359)

The BANKNIFTY had a pleasant start today in tandem with benchmark index. In the initial hour, we did see some genuine attempt to rebound after two days’ of solid knock. However, the selling reappeared at higher levels which augmented at the midst of the session. Eventually, the BANKNIFTY ended the session with nearly seven tenths of a percent cut.

The banking has been the worst hit space in since Friday. In the morning, the global set up was cheerful and hence, we had a promising start of the session. It appeared as if we are finally going to see some greenery in the banking counters. But market had its own plan as we saw market surrendering at higher levels, courtesy to immense selling in this space. Undoubtedly, technical parameters are indicating extreme oversold condition; but if it has to rebound, we need to solid relief move in the global markets. Hopefully we get to see it in the forthcoming session. As far as levels are concerned, 38000-37800 are to be seen next supports, whereas on the flipside, 38600-38800-39000 is to be considered as cluster of hurdles.

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