IGI Logo

Sensex (58279) / Nifty (17362)

The benchmark index started the session with marginal upside gap precisely at 17400. However due to some profit booking in the initial hours, Nifty came off sharply to slide tad below the 17300 mark. Fortunately no further damage done as bulls once again defended the key support and thereafter lifted the Nifty back above the 17400 terrain. Towards the end, sceptical traders used this bounce back to lighten up longs, which resulted in a small decline to conclude the session with a negligible loss.

We witnessed a see-saw like price movement during the session, but the overall range was not very wide as index kept vacillating within the boundaries of not even a percent. At the end, Nifty managed to close slightly below 17400 with some hint of profit booking at higher levels. Price-wise, there is no damage visible yet but we continue with our cautious stance on the index. Also, in our previous commentary, we had mentioned about Nifty confirming first sign of weakness if starts trading below previous week’s high of 17340. Yesterday it did trade below this point but rebounded sharply from the key support of 17300. In practical terms, we reckon this development as good enough evidence for early sign of weakness/ profit booking.

Going ahead, 17450 is to be seen as immediate hurdle and the moment we close below 17300, we would see some immediate profit booking in the market. Hence, traders are advised to stay light and avoid taking aggressive bets for a while. Apart from the benchmark index, the banking space continues to sulk; but yesterday surprisingly, the IT basket was also applying some pressure, which could be the space to watch going ahead.

Nifty Daily Chart

Nifty Bank Outlook - (36469)

We started-off the session slightly lower and then similar to previous trading session saw selling pressure from the word go to tank below 36200. However, smart recovery from the subsequent hour followed by one more round of profit resulted the bank index to conclude the volatile day tad below 36500 with the loss of 0.34%.Throughout the August series, the banking index struggle to surpass the sturdy wall placed around 36200-36300 and yesterday this same levels acted as a support zone. If we look at the hourly chart, the 89 EMA also coincides with the above mentioned levels and considering the recovery seen it has certainly gained more importance. Going ahead, until we manage to sustain above 36000-36200 on the closing basis there isn’t anything to be worried above but any fall below this shall be a sign of caution. On the higher side, 37000-37200 shall be looked as strong resistance zone.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf

SEBI Registration number is INH000000164

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer