IGI Logo

Sensex (52574) / Nifty (15746)

The U.S. markets ended with deep cuts on Friday and the Asian bourses too were trading in red ahead of our market opening. In line with the global cues, the SGX Nifty hinted at a negative opening and hence, Nifty started with a gap down of more than 150 points. However, indices recovered gradually throughout the day and ended the day with gains of four-tenths of a percent around 15750

Our markets recovered from the lows in Friday’ session, which led to some optimism amongst market participants. However, the global sell-off resulted in a gap down opening to start the week on a negative note. But again, the bulls were just not ready to give up and hence, a smart recovery led to a positive close. Post the recent all-time high posted on 15th June, the indices have entered a corrective phase and in the last couple of sessions, some buying interest has again been witnessed around 15500-15450 range. Many of the beaten down stocks during last week recovered from the lows which led to a positive market breadth. The banking space too saw some interest yesterday after the recent underperformance. Now, the support base is around 15500-15450 range while 15800 and 15880 are the immediate resistances.

Going ahead, it would be crucial to see the follow up moves in both Nifty as well as Bank Nifty in the next couple of sessions which could lead to the short term direction. Traders are advised to focus on stock specific momentum and avoid aggressive overnight positions.

Nifty Daily Chart

Nifty Bank Outlook - (34871)

The massive correction in US markets on Friday was followed by extremely negative cues early in the morning yesterday. As a result, our markets opened with more than a percent cut and banking was the weakest link as it slipped below the 34000 mark in the initial trades. However this was followed by a remarkable recovery in the remaining part of the session. In fact due to sharp surge in the latter half the banking index not only recouped all losses but went on to close in the green by gaining nearly a percent from the Friday’s level. The intimal weakness was no surprise to us but what happened after that was clearly unexpected. The market is clearly in no mood to give up as they are showing tremendous resilience despite the unfavourable global cues. Now for the coming session, 35000 followed by 35400 would be seen as immediate hurdles. The recent cautious view may get negated once banking index surpasses the higher range of 35400. Until then better not get carried away by the momentum. As far as supports are concerned, 34700 – 34500 are to be seen immediate levels.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf

SEBI Registration number is INH000000164

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer