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Sensex (57621) / Nifty (17214)

Our domestic market started the day on a weak note amid the mixed Asian bourses, and the sell-off further aggravated with no sign of respite in the benchmark index. A strong sell-off among the market participants further dampened the sentiments. Eventually, Nifty ended the session on a negative note with a loss of around 1.73 percent for the third consecutive session to settle at 17214 levels

The benchmark index slipped below the low of the Budget day ahead of the outcome of the RBI monetary policy due in the week, suggesting a sign of cautiousness in the market. A significant correction was seen among the selective blue chips wherein the bears easily shrugged off all the technical supports. As far as levels are concerned, the 17000 mark is the crucial support for the benchmark index followed by the swing low of 16836, while any breach below this could trigger a major concern for the investors. On the higher end, the 50 percent Fibonacci is expected to act as the immediate resistance zone placed around 17380 levels, followed by 17500 in the near future.

Looking at the eventful week of MPC outcome, the global bourses, the FIIs activities, and the burst in the volatility index, it is advisable to stay light and selective while taking positions in the market.

Nifty Daily Chart

Nifty Bank Outlook - (37995)

The Bank Nifty index has corrected over 2.05 percent and has underperformed the benchmark index in the last trading session. The turmoil in the index has dampened the overall sentiments as the three days consecutive sell-off led by financials and private sector banks have raised the concerning factor in the market.

On the technical aspect, the index has plunged below the mean of the Bollinger band and is a tad above the 21 DEMA on the daily time frame, suggesting a cautious sign. The immediate and crucial support is placed at the 37500 mark, sustenance above which could trigger some traction in the index else, a dent could be seen in the coming days. In contrast, a closure above 38700- 38800 zone in a decisive manner could only trigger the bulls to take control of the index.

Going forward, the PSU banks index has added some traction in the last couple of trading sessions and a watch over the counter would be suggested ahead of the MPC meet outcome, due this week. Also, looking at the volatility outburst, it is advisable to stay selective and look out for stock-specific actions rather than any thematic movement

Nifty Bank Daily Chart

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