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Sensex (49903) / Nifty (15030)

The global uncertainty reappeared Tuesday night and the way other global peers were trading yesterday morning, the gap down was eminent in our market as well. Fortunately, we did not start as lower as the SGX was indicating. In fact post the weak opening, our markets recovered completely in the initial trades. However at higher levels, there wasn’t enough strength to go beyond 15150 – 15200 levels. Hence for the remaining part of the day, we remained in a negative territory and kept flirting with the 15050 mark. Eventually, the dull session ended below this point by shedding nearly half a percent to the previous close.

In our previous commentary we had highlighted how the cooling off in global bourses led to a strong rally beyond 15000 in Nifty. At the close on Tuesday, the stage was all set for yet another similar kind of trading session. But the tentativeness across the globe once again restricted our markets at higher levels. Considering last two days’ price action, we did not see any major damage, rather it can be construed as merely a breather till the time 15000 – 14960 remains defended successfully. On the flipside. 15100 followed by 15150 would be seen as immediate hurdles.

Similar to recent trend, the stock specific action continues in various sectors but there were few pockets who witnessed some profit booking yesterday. Traders are advised to stick to stock centric approach but now needs to be a little fussy when it comes to the stock selection.

Nifty Daily Chart

Nifty Bank Outlook - (33685)

The global bourses were hinting week start for the day, the banking index too wasn’t pardon as it opened with a downside gap. The index recouped all the early morning losses in the initial hour of trade but the overall strength was lacking which resulted in some selling to touch 33600 mark . Eventually, we concluded the dull session with a cut of seventh tenth of percent.

Last two sessions strength boosted the overall sentiments in the market but once again the nervousness in the global market dented the optimism. However, the banking index still managed to sustain above the gap area formed on Tuesday’s session which is certainly a sigh of relief for Bulls. Thus, until BankNifty manages to sustain above 33400-33500 we would maintain our positive stance on this space. On the flip side, immediate resistance is at 34000 – 34300. Traders are advised strictly avoiding any bearish bets and infact should use such declined to add fresh longs.

Nifty Bank Daily Chart

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