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Sensex (57684) / Nifty (17207)

The Indian equity market had a nervous start to the week tracking the weakness in global bourses. However, post the initial hiccups, bulls managed to minimize the damage, which resulted in a decent recovery around the mid-session. Eventually, ensuing the showdown, the Nifty50 index concluded the day marginally in favor of the bears with a Doji look-alike candle formation, a tad above 17200.

The support base around 17100 – 17000 once again proved to be the sacrosanct zone, from where the market has witnessed a substantial pullback indicating the sentiments of our domestic participants but failed to endure the highs. A firm tug of war was seen in yesterday’s trade among the various sectors in which bears have taken the show in the latter part. On the technical front, Nifty remains in the slender range showcasing indecisiveness due to the external global scenarios. As far as levels are concerned, a strong base of 17100 – 17000 is expected to provide the cushion. While on the higher side, the immediate resistance could be seen at 17500.

Looking at the range-bound movement and technical setup, the index is expected to remain in the mentioned slender range until any decisive breach on either side happens. The global market would play a vital role in any decisive breach and until then, aggressive overnight bets should strictly be avoided.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (37686)

An action-packed session was seen in the banking space, wherein the bulls took charge past the initial hiccups and helped the banking index to settle in green. The Bank Nifty index outperformed the benchmark index to conclude the day in green with mere gains of 0.23 percent at 37686 levels.

On technical aspects, the 37000 mark has proved to be the strong demand zone from where the bulls reign, and till the index sustains above the same, the sentiments are expected to remain on the upward trend. However, the significant indicators have not shown any firm bullish reversal indication, and hence a cautious approach is advised in the present scenario. In contrast, a closure above 38200 could affirm the strength in market sentiments. Therefore, for immediate term 37000- 38200 is the primary range for the index, and any decisive breach could dictate the next set of the rally in the market. Going forward, the volatility index is placed near 23 levels signifying the rise in uncertainty. Thus, looking at the data and concerns over global bourses, avoiding any aggressive overnight bets and tracking the global market is advisable.

Exhibit 2: Nifty Bank Daily Chart

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