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Sensex (52694) / Nifty (15732)

The Indian equity market started with another gap down, tracking the fall in global bourses post the confirmation of Wall Street hitting the bear market milestone. However, our market retaliated soon after the opening bell and gradually gauged momentum to march upwards. Though a tentativeness at the higher level was sensed among participants, that pared down the initial gains. And with the whipsaw movements in the market, the benchmark index Nifty50 concluded the day in red with another cut of 0.27 percent, at the critical support zone

Technically speaking, the swing support of the 15650-15700 odd zone was firmly safeguarded, implying the resilience of the technical support. The subdued closing assures the firmness of our domestic market, wherein any sign of respite from the global bourses could trigger strong momentum from hereon. In terms of technical levels, any breach below the mentioned support could drag the market towards the 15500 mark. At the same time, on the higher end, the 15850-15900 could be seen as immediate resistance followed by the psychological mark of 16000.

We would advocate keeping a close tab on the global developments over the upcoming Fed policy meet that might dictate the near-term trend in the global market. Meanwhile, avoiding aggressive overnight bets and keeping a stockcentric approach to deal with such market conditions is advisable.

Nifty Daily Chart

Nifty Bank Outlook - (35085)

Following the recent trend, the bank index started the session with a gap down opening however there was no follow-up selling that resulted in an intraday bounce. As the undertone remains bearish this bounce got sold into as the bank nifty eventually ended with a loss of 0.28% at 33311.

After Monday's sharp sell-off the intraday indicators were highly oversold and hence yesterday some resilience was seen at lower levels. In our previous outlook, we had mentioned critical support at the psychological level of 33000 which coincides with the May swing low. With markets still in the oversold zone, we sense this level is likely to remain defended ahead of key Fed policy meet however if broken may trigger further sell-off in this space. On the higher side, the bearish gap left around 33800 - 34350 remains a stiff resistance for any bounce back in the near term. We reiterate to avoid aggressive positions in the near term as the markets are likely to remain volatile.

Nifty Bank Daily Chart

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