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Sensex (50364) / Nifty (14910)

Monday’s last hour recovery was followed by a positive opening in our indices. However, post some upmove in the first hour of the trade, the index started correcting gradually and Nifty ended the day tad above 14900 with a marginal loss.

Nifty started the day on a positive note and continued the pullback upto 15050 led by the IT space. However, none other sector showed any momentum and the banking space then dragged the index lower due to which the Nifty gave up all the gains. Overall, we did not see any directional move in the index yesterday and hence, the consolidation phase continues for our market. The pullback move has not been followed by any positive momentum which indicates lack of buying interest. For the near term, 15050- 15100 will be seen as immediate resistance while support is placed in the range of 14750-14700. Until we see any breakout from this consolidation phase, traders are advised to avoid any aggressive trades and look for stock specific opportunities on both sides.

Nifty Daily Chart

Nifty Bank Outlook - (34805)

The banking index too opened higher yesterday in tandem with our benchmark index. However, some of its heavyweight constituents saw some selling at higher levels which started dragging index lower. The weakness extended as the day progressed and as a result, the BANKNIFTY eventually ended the session with over a percent loss.

On Monday, the banking stocks had a decent rebound from lower levels but as mentioned in the previous commentary, 35500 – 35600 acted as a sturdy wall for the BANKNIFTY. A close below 35000 certainly does not bode well for the bulls. Hence, it would be interesting to see how it behaves in the coming session; because we are very much close to the crucial support of 34600 – 34400. Overall major indices are still in a consolidation mode as it is still unsure of its near term trend. Although, market is refusing to see a healthy correction, we can see some supply at higher levels. Hence, traders are advised to stay light and should ideally close intraday positions till the time we do not see convincing breakout on either side. As far as levels are concerned, 35000 – 35200 are the immediate resistances; whereas on the lower side, the crucial support band is at 34600 – 34400 as referred in the above section.

Nifty Bank Daily Chart

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