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Sensex (59411) / Nifty (17451)

The Indian equity market snapped its selling spree and made a modest recovery in yesterday`s session. The benchmark index kickstarted the session on a positive note and stayed on the upward trajectory throughout the day. The bulls showed their presence post the strong correction of eight consecutive sessions and levitated market sentiments. The Nifty concluded near the day’s high, procuring nearly nine-tenth of a percent, and settled around the 17450 level.

As we allude to our previous commentary of not being carried away with the sell-off, it aligns precisely with the market move. Also, the buying emergence in the beaten-down counter could be seen as a constructive development in the market. On the technical front, the 200 SMA has shown its significance as Nifty kept hovering near the same. As far as levels are concerned, 17350-17300 is likely to cushion any short-term blip, while the swing low of the 17250 odd zone is expected to act as a sheet anchor for Nifty. While on the higher end, an authoritative breach beyond 17600 could trigger the next leg of rally in the comparable period.

Going forward, many stock-specific adjustments are likely to continue and provide substantial trading opportunities. And even though the indices may not be doing much, the individual stocks are not at all short of action. Hence one should continue to identify such potential movers and trade accordingly and stay abreast with global and domestic developments on a regular basis.

Nifty Bank Outlook (40698)

Bank Nifty started on a positive note and post an initial dip the positive momentum continued throughout the session. The bank index added another percent of gains to eventually end a tad below 40700.

The bank index continues to outperform and yesterday it was the charioteer to pull broader markets higher. Even though the Index specific move post the gap up opening was not that significant but the stock-specific move within the basket was very encouraging for the traders. Going ahead, considering the chart structure of major heavyweight counters we expect this up move to continue where the next key level to watch out for would be in the zone of 41000 - 41300 that coincides with a descending trend line and 89EMA resistance. Once these levels are taken out comfortably then one can technically say that the recent tide of bearishness turns in favor of bulls. On the flip side, on the weekly expiry day, traders are advised to use dips as a buying opportunity where 40500 should be considered as immediate support followed by 40300.

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