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Sensex (62571) / Nifty (18609)

The Indian equity market started the day on a flat note tracking the mixed global cues, wherein the benchmark index Nifty50 witnessed a slender range-bound movement throughout the trading session. The index managed to firmly withhold its crucial support on the weekly expiry showcasing the resilience of the bulls in not giving up easily. Amidst the intense tug of war, Nifty concluded the day with a mere gain of 0.26 percent and settled a tad above 18600 levels.

We allude to our previous commentary of keeping the approach of buying the dip until the sacrosanct support is firmly withheld, which certainly aligns with the current situation. On the technical front, there is no significant change in the chart structure except for the narrowing down of the trading zone. As far as levels are concerned, 18500 is a critical level to watch for on the downside, and till it is safeguarded, there is no sign of worry in the market. On the higher end, a decisive closure above the 18700 zone could only bring back the glee among the market participants.

Nifty Bank Outlook (43597)

On the weekly expiry day, Bank Nifty started on a flat note however as the day progressed there was buying seen in some of the heavyweights that triggered positive momentum back in this space. The Bank Nifty completely outperformed once again as the benchmark index witnessed a lethargic session the bank nifty ended up making new highs by closing with gains of more than a percent tad below 43600.

In our yesterday's report, we had mentioned that the intraday range was getting squeezed and very soon range breakout can be seen possibly on the upside. After the last few days of consolidation, the momentum is back in this space, and considering the chart structure of some of the heavyweights; we can expect a further extension of this upmove. Merry run continues within the PSU banking space as the PSU Bank Index was up around 4 percent and some of the private banks as well showed strong traction. We hence reiterate, to continue with stock-specific trades for outperforming opportunities. As far as levels are concerned, 43350 - 43200 is seen as strong support whereas on the higher side 43900 - 44200 is seen as immediate resistance.

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