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Sensex (48719) / Nifty (14634)

In last few weeks, every Monday has brought some unexpected move at the opening and yesterday too it surprised everyone with a decent gap down opening. Lot of domestic factors weighed down heavily to trigger the downside gap and global cues had very little to contribute in it. Fortunately, Nifty managed to hold the key support in the initial hiccup and in fact, a good amount of buying at lower levels led to a complete recovery in the latter half. Eventually Nifty ended the dramatic session on a flat note.

Every meaningful decline in the market is getting bought into and despite the key indices struggling, individual themes are not holding them back. Although, we may see flat close for Nifty and slightly weaker for BANKNIFTY, we witnessed a good broad based activity in the market. Hence, it’s advisable to stick to a stock centric approach and it’s okay if we avoid index specific trades for a while. But for compulsive index traders, try to buy as close as possible to intraday supports and avoid carrying overnight aggressive bets. As far as Nifty is concerned, 14550 – 14400 remains to be a sacrosanct support zone; whereas on the higher side, we may see Nifty reclaiming 14800 – 14900 once it surpasses the 14700 mark.

Nifty Daily Chart

Nifty Bank Outlook - (32466)

Although global market looked almost stable, the banking index opened with a downside gap and then corrected towards the psychological mark of 32000 in the initial hour of trade. As the day progressed, the index remained dull with no major price action in either direction. Fortunately in the final hour, we witnessed smart buying interest at lower levels to cover most of the lost ground and conclude the day with loss of 0.96% at 32466.

Last week, the banking index recovered from the supports of 30400-30500 to surpass the hurdle seen around the SMA in the daily chart (32200-32400). The further buying interest was seen to extend the upmove beyond 34200. The falling trendline acted as a stiff hurdle for BankNifty and hence, we saw decent profit booking precisely from the same levels. Yesterday, once again index tested levels below the 89EMA which was placed around 32400 mark but smart recovery in the end resulted closing back above the same. Going ahead, it would be interesting to see how BankNifty behaves. For the time being, until we manage to sustain above the important mark of 32000; traders are advised avoiding any kind of bearish bets.

Nifty Bank Daily Chart

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