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Sensex (65433) / Nifty (19444)

The Indian equity market started the session on a positive note, as indicated by the GIFT Nifty. However, there was an initial hiccup in the benchmark index, which acted as a catapult to set up a buoyant tone for the remaining part of the session. The Nifty50 index managed to withhold its positive stature for the third consecutive session this week and eventually settled around the critical resistance zone, procuring 0.25 percent of the gain from the previous closure.

Sectoral rotation is quite evident in the markets, with the high-beta index Nifty Bank being the charioteer to uplift the sentiment. Technically speaking, the benchmark index is gradually inching toward the crucial resistance zone of 19480-19500 and in case of no significant global aberration, there's a high possibility of surpassing the higher boundaries, potentially setting the stage for positive momentum towards 19650-19680. While on the flip side, the support base is now elevated to 19400-19370, followed by 19300 in the comparable period.

Nifty Bank Outlook (44479)

The Bank Nifty had a lackluster opening and in the initial hour, prices declined, revisiting the lows of the previous session. However, during the mid-session, substantial buying activity emerged in prominent heavyweight stocks. This surge elevated the high beta index, and as the day progressed this sector displayed remarkable performance. It concluded the day with gains of over a percent ending a tad below the 44500 mark.

After a long time, a robust positive momentum was visible in the banking space. Following several sessions of consolidation within a confined range, there is now a price breakout on the upside. The substantial positive movement observed yesterday has likely established a strong foundation based on the 89 EMA, and the prices have now ended near the confluence zone around the resistance levels of the 50 and 20 EMA at 44500. With yesterday’s momentum and notable buying seen in key heavyweight stocks, there is an anticipation of further positive movement on the weekly expiry day. Immediate resistance could be perceived around 44750 to 44900, in the coming session. In terms of indicators, the RSI smoothened is on the brink of generating a fresh buy signal alongside its average line.

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