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Sensex (52266) / Nifty (15557)

The Indian equity market has seen an immensely volatile weekly expiry session, wherein the benchmark index started the session on an optimistic note. The initial buoyant move in the index got aggressively sold into, dragging it towards the day’s low, but soon after, it recouped from the lows and once again cheered the overall sentiments. With all day-long roller-coaster moves, the Nifty finally concluded the day in green, with gains of near a percent, a tad above the 15550 level.

Technically, the market has attracted the trader’s community with its volatility, and also, significant sectors have witnessed strong moves that have added the cherry on the cake. However, the inherent trend remains tentative as the index hovers below the critical zone of 15700. As far as levels are concerned, the 15300-15350 zone is expected to cushion any sort of correction in the near term. While on the contrary, until a decisive breakthrough is not seen above the 15700 zone, the challenging period is likely to persist in the market.

A broad-based buying has been observed across the bourses on the sectoral front, wherein the significant benefactors that boosted the positive sentiments were from the Auto space, followed by IT. Looking at the recent development, traders are advised to keep following the stock-centric approach for better trading opportunities and keep a close tab on global developments.

Nifty Daily Chart

Nifty Bank Outlook - (33135)

Bank Nifty as well started on a positive note and as it seemed that bulls are going to drive easily on the weekly expiry session there was a sudden sell-off that dragged the bank index below the previous session low to mark the Intraday low of 32652. The action for the expiry session was not done yet as a strong bounce from lower levels brought bulls back in the hunt to eventually end with gains of 0.88% at 33135.

In our previous outlook, we had mentioned the bank index moving in a sequence of one up and one down day, and yesterday it was turn of the up day. Now considering the global cues, we are likely to start on a positive note however it would be crucial to see if the prices could break this sequence today to end on a high note. Some of the private banks bounced back sharply yesterday from key support levels indicating buying at lower levels and this definitely augurs well for the bulls. However, we would suggest not to get complacent as recently this space has underperformed and one needs to be very selective. As far as levels are concerned, immediate support is at 32600 - 32400 whereas resistance is at the 33500 - 33800 mark.

Nifty Bank Daily Chart

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