IGI Logo

Sensex (57685) / Nifty (17246)

Tuesday’s smart recovery was followed by a gap up opening yesterday owing to favourable global cues. However market once again turned a bit nervous as the benchmark index entered a crucial juncture of 17400-17500. In the first half, we witnessed a gradual slide in benchmark and then some consolidation throughout the remaining part to conclude the session tad below the 17250 mark.

The bulls couldn’t capitalise on the head-start they got early in the morning. The set up was just ideal to surpass the sturdy wall around 17500-17650. But since we have already seen a vertical rally in previous two weeks, the real strength is clearly missing. This is what we had alluded to in the weekly commentary, the key indices are likely to see some consolidation and they may not keep up the same momentum as it was in the previous weeks. For the coming session, 17350 followed by 17450 are to be seen as immediate hurdles; whereas on the flipside, we can see a cluster of strong supports around 17100 - 17000.

We reiterate that the low hanging fruit is gone for index specific trades; but stocks are still providing good trading opportunities. Hence, one should keep focusing on individual themes and try to identify the potential movers within the same.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (36147)

Bank Index started on a strong positive note however it lacked follow-up buying and it slipped lower throughout the session with no major traction. The Bank Nifty not only erased its morning gains but eventually ended with a loss of around 0.55% at 36147.

In the last four sessions, it can be clearly seen the bank index consolidating in a range and this is what we have been saying for the last few sessions. The undertone remains bullish however since we are placed around stiff resistance formed by (i) 200SMA, (ii) Bearish Gap, (iii) 61.8% retracement the momentum is missing and the trending upmove will only be seen once we see a sustain close above 37000 – 37300. Till then expect this consolidation to continue with any dips towards 35700 – 35400 likely to get bought. We reiterate to have stock specific approach that may give outperforming opportunities.

Exhibit 2: Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer