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Sensex (57977) / Nifty (17322)

Our market started the session on a volatile front despite positive global cues but briskly got the hold to soar upwards. In the latter half, some corrections got triggered that trimmed down all the gains in the benchmark index Nifty50. Post an intense tug of war between the bulls and bears, Nifty concluded the day on a subdued note with a mere loss of 0.17 percent at 17322 levels.

The index resisted surpassing the 17500 mark and witnessed some correction, indicating it to be a sturdy wall. On the flip side, 17100 is expected to provide vital support to the index, and until the mentioned zone is not breached, a range-bound movement is expected to be seen. Going forward, looking at the technical structure and the sentiments among the market participants, an indecisiveness could be sensed.

Meanwhile, we might witness some volatility due to weekly expiry and global scenarios in the near term. Hence, stock selective approach should be taken in the market for the time being, and aggressive bets should be avoided.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (37954)

The Bank Nifty index witnessed an intense tug of war between the bulls and bears throughout the day and finally settled on a negative note, a tad below the 38000 mark. The index plunged nearly 0.57 post its whipsaw movement and showcased a lack of assertiveness at the higher zone.

On the technical front, the index resisted breaching the mean of the Bollinger band on the daily time frame and also settled below the 21 DEMA, indicating a sign of tentativeness among market participants. The strong demand zone is placed near the 37300-37500, sustenance above which the index is expected to remain in bullish terrain. As we advance, any dip towards the support should be seen as an opportunity for the bulls. In contrast, the 38500-38700 zone could act as an intermediate resistance and a range-bound movement could be seen in the near term.

Going forward with the technical setup of the banking index, a range-bound movement is expected in the near term. Henceforth, it is advisable to keep the view of BUY on the dip and SELL on the rise until any determined breach from the mentioned range is not seen in the coming period.

Exhibit 2: Nifty Bank Daily Chart

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