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Sensex (65252) / Nifty (19387)

The favorable global bourses and the buoyancy from the previous day have led to a gap-up opening for the benchmark index, that too above the primary hurdle, which eventually levitated the overall sentiments in the market. However, post the initial trading hour, a strong bout of profit booking pitched in, eroding all the gains. Amidst a strong sell-off on the weekly expiry session, the benchmark index snapped its winning streak and routed below the 19400 zone with a mere cut of 0.29 percent.

The sell-off post gap up opening showcases the resilience of the bears as they swept away the gains and eventually dragged the index to the lower terrain. Technically, on a closing basis, there are hardly any alterations in the price chart, but with the big bearish candle formation, it is likely that the time-wise correction phase remains intact. On the levels front, 19300 is expected to cushion any further blip, while the sheet anchor lies around the 19250-19200 zone. On the flip side, 19500 remains a daunting task and a decisive breakthrough could only restrengthen the undertone.

Nifty Bank Outlook (44496)

Following the positive momentum from the previous session, the Bank Nifty began the day with a strong opening and extended its gains in the initial hours, approaching the 45000 mark. However, as 45000 is seen as a psychological level on the expiry day, prices started to gradually decline for the rest of the day, giving up the morning gains. Eventually, prices ended the session flat tad below the 44500 level.

While there hasn't been a significant shift in prices, the session was disappointing for the bulls, given the promising start they had in the morning. Despite this, the weekly gains are still being held onto, and the focus will now be on the development on the last day of the week. If yesterday's price movement is interpreted as part of the expiry adjustment and if prices resume their upward trajectory today, the bulls could have a strong position entering the monthly expiry week. However, if weakness persists, the market may continue to experience the recent range-bound behavior, particularly for this prominent heavyweight. Considering the RSI smoothened buy signal within the oversold zone, a strategic approach would involve considering long positions during price dips. In this scenario, the support levels at 44200, followed by the 89EMA around 44000, are expected to hold firm.

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