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Sensex (59537) / Nifty (17759)

Tuesday morning, the global cues were slightly better and hence, we started the session with decent bump up above the 17400 mark. As the day progressed, the buying momentum kept picking up; in fact, towards the fag end, we witnessed a complete gush across the board. This lifted the overall sentiments so as the key indices to not only recoup Monday’s losses; but went comfortably beyond last week’s high as well.

It seems that the traders’ sentiment has changed 360 degree in merely 24 hours. On Monday, markets opened with a massive downside gap and on Tuesday after a positive start, the giant leap was visible on screen itself. Honestly speaking, we did not expect the rebound to go beyond 17550 – 17600. In fact the velocity at which the broader market took off is certainly a pleasant development for our markets. Now, since we have already surpassed last week’s high, a follow up in coming session would send Nifty towards 17850 and then towards the key psychological level of 18000. On the flipside, 17600 – 17500 are to be seen as immediate supports. If there is no aberration on the global front, any small decline in the coming session should ideally be bought into. Let’s see how things pan out globally and hope market keeps shining as we have kicked off the festive season now.

Nifty Bank Outlook (39537)

On Tuesday, Bank Nifty started with a gap-up opening, and right from the word go it started moving higher. As the day progressed, the Bulls started picking up momentum and without any relevant intraday dip the bank nifty not only regained Monday's lost ground but went on to cross the previous week's high comfortably. Eventually, it ended with strong gains of 3.29% at 39537.

In our previous outlook, we had mentioned that despite Monday's broad-based sell-off, bank nifty has managed to hold the sacrosanct support of 38000 on a closing basis, and now with Tuesday's strong up move we are observing a pattern breakout similar to double bottom formation. Going ahead if there's no aberration on the global front, we are likely to see a move towards and beyond 40000 in the near term. Traders are hence advised to keep a positive bias and use any minor dips as a buying opportunity. As far as levels are concerned, immediate support is seen at 39000 - 38800 levels whereas resistance is at 40000 followed by 40160

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