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Sensex (65323) / Nifty (19428)

The Indian equity markets started the week on a positive note, wherein the benchmark index witnessed a modest recovery from the previous week’s low. However, the market lacked conviction and remained in a slender range throughout the week, barring the last trading session, which dragged Nifty below the pivotal level of 19500. Also, the RBI’s status-Quo failed to direct any strong trend in the markets. And amidst the lackluster moves, the Nifty50 index concluded the week on a negative note, correcting 0.45 percent WoW to settle around 19430 zone.

The Nifty index restricted its move to 230 odd points in the eventful week, showcasing timidity among the counterparties. Technically speaking, amidst the ongoing consolidation in the market, the chart structure construes a time-wise correction, which is to be taken as a healthy sign in a bullish market scenario. As far as levels are concerned, the immediate resistance can be seen around 19500-19600 zone, followed by the bearish gap of 19678-19705, withholding a sturdy hurdle for Nifty and requires a decisive breakthrough to regain strength. On the flip side, the immediate support is placed around 19380-19350, followed by the strong demand zone of the bullish gap 19235-19201 on the spot levels for this week.

Nifty Bank Outlook (44199)

The bears maintained their dominance throughout the eventful week, as the high beta index extended its losing streak for the third consecutive week. The week began with prices trading within a narrow range, but the bears gained momentum following the RBI policy announcement on Thursday. Prices slid further on Friday, resulting in a 1.52% cut from its previous week's closing. The week eventually concluded around the 44200 level.

The Bank Nifty has wiped out over 2000 points from its all-time high levels, breaching intermediate support quite effortlessly. The prices have now fallen below their key support of the 50 EMA, which previously served as a strong pivotal point for bullish reversals. The upcoming crucial support to monitor is the 89EMA around 44100 – 44000 levels, coinciding with the weekly swing high. This level marks an ideal point for bulls to attempt regaining momentum; however, a breach below it might trigger further weakness in the near term towards 43500 – 43300 levels. On the flip side, we observe hurdles at regular intervals, and for a bullish confirmation to materialize, prices must conclusively close above this week's high, surpassing the 45100 mark with conviction, as this level also aligns with the 20EMA. Prior to that, the range of 44600 – 44800 could be seen as immediate resistance.

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