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Sensex (66160) / Nifty (19646)

The Indian equity markets took a breather post four weeks of consecutive rally, wherein the Bulls opted to take some money off the table. The benchmark index remained tentative throughout the week, with the majority action happening in the broader space. Amidst profit booking, the Nifty50 index corrected a mere half percent, settling the week around the 19650 zone.

The Nifty index restricted its move to 300 points in the week, shrugging off the positive developments among the global bourses. The current phenomenon was very much in line with the market expectation especially post the recent stellar rally to uncharted territory. Technically speaking, amidst the ongoing breather in the market, the chart structure construes optimism, and it is likely to continue the cheerful run in the comparable period. As far as levels are concerned, till the index firmly withholds the pivotal support of 19500, there is no sign of caution in the market. While on the higher end, 19800-20000 holds stiff resistance and a decisive move beyond which could trigger the next leg of rally.

Nifty Bank Outlook (45468)

Throughout the past week, the high beta index experienced consolidation, with prices staying within a specific range. On the expiry day, taking cues from positive global bourses, the index attempted for a new high but failed to capitalize and eventually slipped to intra week’s low. This downward trend continued on Friday, leading Bank Nifty to close the week with a loss of 1.32%, just below 45500.

The Bulls might be disappointed by their inability to maintain the strong closing seen in the previous week. Currently, it appears that prices have entered a consolidation phase following a recent rally and are now positioned near the pivot support of 20SMA (45300) on the daily chart. Historically, this crucial average has acted as strong support, making it vital to observe how prices react in the upcoming sessions. Any breakdown below the same could further weaken the trend, possibly slipping below the 45000 mark. On the flip side, successfully defending these levels may trigger a rebound towards 46000 - 46300.

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