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Sensex (59457) / Nifty (17718)

The Indian equity market started the day on a mild note amid mixed global cues, wherein the benchmark index seemed a bit nervous from the early trades. During the mid-session, an intense bout of sell-off triggered, tumbling the index from the top towards 17660 odd zone. However, the bulls retaliated from the lows and made a modest recovery to pare down some losses. With such a volatile session, the Nifty concluded the day with a correction of 0.55 percent and settled a tad above the 17700 level.

Technically speaking, the index seems tentative at higher levels and again slipped in the broad consolidation range. However, the undertone is likely to remain in favor of the bulls, and as far as levels are concerned, 17820-17860 zone still holds the sturdy wall for the index and any persistent breakthrough could only open the gates for further upside. On the flip side, 17540 - 17500 has seen some strong resurgence in providing vital support and thus could be seen as a crucial juncture to add longs for intraday dips, while the sacrosanct support lies at the 17400 mark.

Nifty Bank Outlook (41468)

Ahead of the weekly expiry and key event of the FOMC meeting, the bank index started on a muted note and then slipped lower below the 40900 levels. During the second half, there was a modest recovery to eventually reclaim 41200 levels on closing base and end with a loss of 0.64%.

Despite a strong bounce back in the last two sessions, we mentioned avoiding being complacent as we are still not out of woods, and we are in a consolidation phase. Now if we meticulously observe the daily chart, prices are trapped within the big bullish candle left on the 14th September and the next directional move can only be seen once the index breaks the consolidation range. If we observe the intraday charts, we are witnessing a Symmetrical Triangle formation with support placed around 40800 - 40500 levels whereas, on the higher side, 41600 - 41840 remains a stiff resistance. Traders are advised, to keep a tab on the mentioned levels and ideally should play the consolidation by buying around the support and selling around the resistance levels.

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