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Sensex (57301) / Nifty (17092)

Our domestic market plummeted in the early trade amid the crackdown in the global market. The benchmark index Nifty50 slipped over 2 percent to breach the psychological mark of 17000 and has made a low of 16843 in initial trades. Gradually, the market gained control over the fall and witnessed some resurgence from the lower end to conclude the day tad below 17100

The volatility index has seen a huge surge from the past couple of trading sessions, which is to be seen as a matter of concern for the market participants. On technical aspects, the index has managed to sustain above the previous swing low and is also hovering just above the 200 SMA & DEMA. At present, the 16800 odd levels tend to provide strong support to the index and till the level is sustained, we might expect some retaliation from the domestic participants at lower levels (if there is no aberration on the global front). In contrast, 17200 – 17250 could be seen as the immediate resistance zone followed by the sturdy wall of 17500 for the near future.

Thus, as long as the global uncertainty looms over, the volatility index is expected to remain on the higher side and the market is likely to remain tentative with huge whipsaw movements. Hence, it is advisable to stay light on positions and avoid carrying aggressive overnight bets.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (37372)

A high volatile day of trade was seen in the banking space, wherein the initial loss got pared down by the session’s end. The Bank Nifty index settled the volatile day on a negative note with a loss of 0.83 percent to close at 37372 levels.

On the technical parameters, the index repelled back within the range post the initial hiccup. Although the index seemed to lose its momentum from the last couple of trading sessions and is stuck in a narrow range-bound movement. Most of the technical indicators are in the favour of the bears. However, till the time 200 SMA is sustained i.e. placed near 36600 zone, the trajectory remains to be in the upward direction and any short-term blip should be considered as buying opportunity for the day traders. Looking at the technical setup and increased volatility, it would be a daunting task to overcome the psychological barrier of the 38000 mark. However, a closure above the same could only strengthen the bulls once again and until then a slender range bound movement could be expected.

Exhibit 2: Nifty Bank Daily Chart

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