IGI Logo

Sensex (58142) / Nifty (17353)

The Indian equity market has halted the free fall and gained some momentum in the early trade amid a strong recovery across the fallen bourses. The domestic market shrugged the turmoil of the mixed global cues and advanced with authority. The benchmark index Nifty50 soared over 3 percent to settle the day at 17352 levels.

A strong bullish candlestick formation was seen in the index showcasing the retaliation of the bulls on the D-street. The broad-based buying across the sectors has contributed to yesterday’s rally. The Auto and IT were the initiators that received a strong follow-up from the BFSI and Metals that became the primary benefactors for the day. On the technical front, Nifty has filled the gap with its single day up move and reversed the significant indicators to turn on the bullish side. As far as levels are concerned, 17000-17100 holds to be the reluctant support zone and any dip could be utilized to go long, while, on the higher end, 17500 is expected to act as an immediate hurdle followed by the sturdy wall of 17650

Looking at the momentum and constructive setup of the index wherein the bulls have recouped their strength, a strong tug of war could be seen from hereon. Although the global peers should be closely tracked by the momentum traders and aggressive bets should be avoided until the volatility subsides further.

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (38170)

The banking index has witnessed a strong recovery post the fall and has recouped over 3.40 percent to settle at 38170 level. The momentum in the banking space was seen throughout the day as it outperformed the benchmark index Nifty50 and nearly covered the unfilled gap on the daily chart.

The 200 SMA has acted as the sheet anchor as a strong resurgence was seen in the single-day rally. On the daily chart, the formation of a strong bullish candlestick pattern has helped the index re-test the mean of the Bollinger band and placed it above all its major exponential moving averages. The halt in the free fall has turned the sentiments bullish, as the major indicators have also seen a reversal towards the bullish front. At the current juncture, 37500 holds to be the immediate demand zone for the index, followed by the key support of the 37000 mark. While on the flip side, a cluster of resistance is placed from the 38700-39000 levels.

Looking at the technical setup, the index seems to remain in the mentioned range with positive bias. However, some volatility could be expected considering the global markets. Hence, staying selective and light on position is advisable.

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