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Sensex (49802) / Nifty (14721)

After Wednesday’s tail end surge, it was really difficult to digest a surprising gap up in our market. It was on the back of strong cues from the global peers after the US Fed meet. However, once again market failed to hold on to its gains as we saw a sudden nosedive post the midsession to conclude the penultimate weekly expiry with over a percent cut.

Since last few days, key indices were range bound but if we meticulously observe the price action of individual stocks (especially from the F&O universe), some sort of distribution was clearly visible. Last two day’s decline in Nifty and other key indices was the outcome of the overall selling happening in the individual stocks. With yesterday’s move, Nifty is back to its post budget gap that was created around 14470 – 14330. Let’s see how things pan out as we move closer to the monthly expiry week. For the coming session, 14630 followed by 14700 would be seen as intraday resistances; whereas on the lower side, a sustainable breach below 14470 would open the floodgates for an extended correction.

Nifty Daily Chart

Nifty Bank Outlook - (34229)

The Bank Nifty index breached its crucial support on Wednesday but it opened higher yesterday due to positive global cues. However, post some consolidation, the index corrected in the later half and ended the day with a loss of over a percent.

The index had breached its crucial support in Wednesday's session which had turned its short term trend from sideways to down. The pullback move at open yesterday got sold into and the previous support zone turned into a resistance. Now, if we see the daily charts, the last three days price action has resulted in the formation of ''Three Black Crows'' candlestick pattern, thus confirming the change in short term trend to down. Thus, traders should avoid any bottom fishing in spite of the correction and stay light on positions. On pullback moves, 34070 followed by 34500 will be seen as immediate resistances while 33350 and 32900 will be the supports.

Nifty Bank Daily Chart

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