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Sensex (49162) / Nifty (14851)

The SGX Nifty hinted at a negative opening for our market and in line with that, we started the day gap down below 14800. However, we did not slip much from the opening levels and the index recovered much of the losses around noon. But since the participation was missing from the index heavyweights, Nifty again corrected and ended the day at 14850.

We had a gap down opening post which we saw some recovery in the first half. Although the index then consolidated in a range in the later half, it was a day of stock specific momentum wherein the broader markets continued to witness good buying interest in spite of no momentum in the index heavyweights. Although yesterday’s correction has not distorted the short term charts, the 15000 mark has certainly become a stiff hurdle which needs to be surpassed for providing a driving force to the index. The ongoing consolidation indicates that the market wants to spend some more time in the ongoing corrective phase. However, this seems to be just a time-wise correction and hence, we are witnessing good buying interest in the broader markets. The immediate supports for Nifty are placed around 14770 and 14690 whereas resistance is in the range of 14950-15000.

Traders are advised to trade with a stock specific approach as there are much better trading opportunities seen there. The midcap index continued its outperformance as it has already given a breakout from resistance. On the other hand, the PSU stocks have recently seen good buying interest and in yesterday’s session many stocks from this basket provided mesmerizing moves. Traders should continue to focus on such outperforming pockets which are delivering good short term returns.

Nifty Daily Chart

Nifty Bank Outlook - (32872)

We had a gap down opening yesterday mainly on the back of some nervousness seen in the global markets. Mostly financial space leads from the front and yesterday too, the BANKNIFTY led the down move at the opening. Fortunately, there was no further aberration seen post the initial trades. In fact, market did manage to hold their morning lows and traded within a range throughout the remaining part of the session. Eventually, banking index ended the session with less than a percent cut. Honestly speaking, on Monday at the close it appeared as if the key indices are likely to breakout in the upward direction. But global sell off dented the possibility and even resulted in a surprise gap down yesterday.

But we must accept the fact, our market has an inherent strength which is not letting them fall sharply or on a consistent basis. In fact, all intermediate declines are comfortably getting bought into. Also, since last few days traders are not bother at all where indices are heading. We can see complete negligence in the index segment and a tremendous buying interest in various thematic moves. So ideally traders should continue with this approach and as long as levels are concerned for BANKNIFTY, 33150 – 33500 are to be seen as intraday hurdles; whereas on the lower side, 32600 to be considered as a key support. Traders should also take a note that Thursday being the holiday, the weekly expiry is to be concluded today and hence, one should position accordingly.

Nifty Bank Daily Chart

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