IGI Logo

Sensex (57858) / Nifty (17278)

US markets witnessed a massive volatility on Monday night and managed to close slightly in the green. But Tuesday morning, DOW futures were trading with a deep cut, which resulted in a gap down and then a sharp correction to follow to almost test the 16800 mark. Fortunately the oversold market attracted some buyers at lower levels to lift the Nifty towards 17300 at the close.

Market corrected quite sharply in last 4 – 5 sessions on the back of some global uncertainty. Tuesday morning, the early sell off got absorbed because market was deeply oversold and if we have to find any reason technically, Nifty had precisely reached it’s 78.6% retracement of the recent up move. This couldn’t have been possible without the contribution of a banking space. In line with expectations, financial counters started showing tremendous strength at lower levels which lifted the overall sentiments of the traders’ fraternity. Now if there is no further aberration on the global front, 17000 – 16800 is likely to act as a key support ahead of the budget.

In fact, we will not be surprised to see some recovery back to 17500 – 17600 in coming sessions. Since the volatility is likely to be on the higher side, traders are advised to stay light but can certainly look for stock specific buying opportunities.

Nifty Daily Chart

Nifty Bank Outlook - (37707)

The banking index has witnessed a strong day of trade that has halted the carnage done by the bears in the banking space. The index finally saw a day in green with a massive spurge of over 2 percent to settle at 37706.75 levels and has outperformed the benchmark index.

On the daily time frame, a bullish engulfing candlestick has been formed in the last trading session indicating the initial bullish sign in the counter. Also, the index has surged above the mean of the Bollinger band and has surpassed all its major exponential moving averages on the daily time frame, affirming the strength in the trend reversal. However, the confirmation is yet to be made with a breach above the 38000 mark. At the current juncture, the immediate support for the index could be seen around the 37000 mark, while on the flip side, 38000 is the primary hurdle followed by 38800-38900 odd zone.

Hence, looking at the technical setup, any breach above the mentioned resistance zone could re-strengthen the bulls to navigate the near-term trend. However, a cautious approach should be kept amid the monthly expiry as the volatility is expected to remain on the higher side.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

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