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Sensex (53177) / Nifty (15850)

Yesterday morning, the global cues were a bit sluggish and as a result, our markets started the session on a weak note. In the initial trade, the Nifty went on to test the key support around 15700. This was followed by some gradual recovery in the first half which eventually gained some momentum towards the fag end of the session. As a result, Nifty ended the session with negligible gain precisely at 15850.

The way market recovered yesterday from morning lows, 15700 has clearly proved its significance and the strategy of buying at key supports played out well. If we compare yesterday’s close from the previous close, we may see Nifty ending marginally in the green but practically market has managed to close at the highest point of the day; bodes well for the bulls. For the coming session, 15750 – 15700 remains to be a strong support zone and till the time we do not slide below it, one should continue with buy on decline strategy. On the flipside, 15925 – 16000 is to be considered as a sturdy wall. As of now there is no indication of market surpassing the 16000 mark but the moment we do it, we are likely to witness a strong short covering rally in the market. Till then 16000 – 15700 is to be seen as immediate range for the benchmark index.

Yesterday although markets traded in the negative terrain for the most part of the session, there were ample opportunities seen in individual spaces. Hence, traders can continue to focus on such potential candidates.

Nifty Daily Chart

Nifty Bank Outlook - (33642)

Bank Nifty started with a big gap-down opening and whereas there was buying in broader markets at the lower levels, the bank index remained within a range throughout the session and eventually ended with a loss of half percent at 33642.

With yesterday's loss, the bank nifty has given up entire gains that were witnessed during the gap-up opening seen on Monday. Now even though there was underperformance by this space it was not a runaway selloff and considering the positive crossover in the RSI smoothened indicator one can remain hopeful for positive traction in the near term. Yesterday some of the private banks were the major culprits for the weakness whereas some PSU banks outshined. Such trading opportunities may continue on both sides of the trend and traders can continue focusing on the same. As far as levels are concerned, immediate support is seen at 33400 - 33050 whereas resistance is seen at 33900 - 34100 levels.

Nifty Bank Daily Chart

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