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Sensex (50051) / Nifty (14815)

Despite SGX Nifty was indicating a sluggish start, our market surprisingly opened in the green. The initial lead got sold into in the subsequent hour, however once again index managed to march higher post the Supreme Court verdict on loan moratorium. The roller coaster was not done yet as we once again saw this rally getting fizzled out around the mid-session. Market came off sharply to test the 14700 mark and once again the down move was bought into. In the midst of all this confusion, the Nifty eventually settled tad above 14800 with modest gains of half a percent.

Yesterday market had multiple attempts on both sides and although it managed to close in the positive territory, the conviction is clearly lacking. Hence, if one wants to trade the index, it’s advisable to buy dips and look to sell as close as possible to the resistance zone until we see a decisive breakout on either side. For the coming session, 14875 followed 15000 remains to be strong hurdles; whereas on the lower side, the way daily chart is shaped up, a sustainable move below yesterday’s low i.e. 14707, we may see weakness extending in the market. Hence, keep a close eye on these key levels.

Nifty Daily Chart

Nifty Bank Outlook - (34184)

The BankNifty started-off yesterday’s session on an optimistic note and saw follow-up buying to extend the upmove towards 34300. However, we witnessed some hiccups post Supreme Court ruling on loan moratorium but soon the banking index resumed its upmove to surpass beyond the morning highs. The BankNifty clearly outperformed yesterday and eventually concluded the day posting handsome gains of 1.73%.

If we consider the overall price action in last three trading session, it has been trading in a range 1000 points (33350-34350). Despite yesterday’s gains, the bigger picture doesn’t look so appealing at this point in time. On the higher side, 34400-34500 remains a strong resistance zone; whereas, any correction below recent support around 33300-33400 shall open doors for 32800 and then 32000. Hence, it’s advisable to avoid any bullish bets until we don’t see any relevant upmove beyond 34400-34500.

Nifty Bank Daily Chart

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