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Sensex (65953) / Nifty (19597

The Indian equity market started on a mild note taking cues from the subdued Asian bourses and stayed within a slender range for the initial half of the session. By the latter half, some buying emergence in the Pharma & Health care space, followed by IT, levitated the benchmark index to higher levels. Amidst the range-bound movement, Nifty50 concluded the session on a positive note, attaining 0.41 percent gain and settling around the 19600 mark.

Technically, key indices lacked assertive moves and stayed in a mere range throughout the day, which portrays a lack of conviction among the market participants on either side. However, the overall trend seems upbeat as the index hopped over the 20 SMA again. As far as levels are concerned, the bearish gap of 19678-19705 is the crucial hurdle, and it requires an authoritative breach to turn the sentiments to ultra bullish once again. On the flip side, the pivotal support 19500 is supposed to cushion any intra-day blip, while strong support lies around the 19400-19380 zone in the near period.

As we advance, the global bourses are very likely to set up the immediate tone for our markets. However, one needs to be cautious and have a pragmatic approach to deal in such market scenario. Meanwhile, the broader market is likely to keep the buzz and we would advocate traders to continue focusing on a stock-centric but selective and watchful approach for a while

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook (44837)

Bank Nifty had a mild positive start to the week, but there was no major traction as prices experienced choppy moves within a mere 200- points intraday range. The high beta index concluded the session without any significant change, closing at 44837. Technically, not much has changed, and prices are still in a consolidation phase. Traders seem to be cautious and keeping their positions light ahead of the RBI policy, anticipating a clearer direction after this event. Currently, prices are oscillating between two crucial averages, 50 SMA and 20EMA, and the next directional move is likely to occur once this range is broken.

In such a scenario, the 50 SMA support is positioned around 44700, followed by the key support level at last week's low of 44300. On the other hand, the immediate hurdle is seen at 20 SMA at around 45200 and a bearish gap approximately at 45400. Traders should keep a tab on the above levels ahead of the key event and trade accordingly. One can also continue with the stock-specific action, however, they need to be very selective as follow up action is clearly missing.

Exhibit 2: Nifty Bank Daily Chart

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