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Sensex (53749) / Nifty (16026)

The last three days’ price action suggests a lack of conviction at higher levels, and hence every time we move closer to the higher range, the market starts getting nervous. The benchmark index Nifty50 stayed under pressure from the initial hours and gradually descended to test the 16000 mark. A brisk recovery from the 16000 was seen in the latter half, but that too got pared down by the fag end to eventually conclude a tad above this key point. With all the timidness throughout, the market concluded the day in favor of bears with another cut of 0.62 percent.

The soaring inflation and sell-off in global bourses have impacted the traction in Indian equities resulting in a slender range bound movement and probe to the sustainability at higher levels. The index is currently placed at the critical support zone of the 16000 mark, and any breach below the same could dampen the sentiments once again. As far as levels are concerned, the 15700-15750 zone is expected to cushion the downside of any near-term breakdown. While on the contrary, 16200-16250 is the immediate resistance for the index, followed by the 16400 level in the near term.

The banking and financial space has single-handedly provided a sentimental boost among the market participants. In contrast, tracking the global sell-off, IT lost its sheen and dragged the market lower. Traders are advised to keep a close tab on the global developments. Also, we advocate avoiding any aggressive bets and being selective in stock picking for trading opportunities.

Nifty Daily Chart

Nifty Bank Outlook - (34339)

The BANKNIFTY witnessed a positive start in tandem with benchmark ; but unlike Nifty, the banking index remained firm for the major part of the session. Around the mid-session, the BANKNIFTY tested the 34700 mark but similar to recent behaviour, was unable to hold on to its gains in the latter half. In this process, BANKNIFTY gave up major chunk of its gains and concluded almost at the lowest point of the day. Despite all this, it eventually ended marginally in the green a tad above the 34300 mark.

The banking space has been bucking the trend throughout this week but if we meticulously look at the daily time frame chart, twice in last three sessions, we witnessed some profit booking around the sturdy wall of 34700 – 34800. This coincides with the ’20-day EMA’ and hence, till the time, it does not surpass successfully, the aggressive bets are strictly avoided on the long side. On the flipside, 34000 followed by 33800 are to be seen as immediate supports. At this juncture, market is not offering any convincing trade for participants and hence, its advisable to stay light on positions and respect the levels on either side.

Nifty Bank Daily Chart

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