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Sensex (53159) / Nifty (15924)

The day started slightly higher despite mixed global cues. In the initial trades, market had some tentativeness which resulted in a small downtick. However this didn’t last too long as the buyers latched on to this opportunity to not only reclaim the positive territory but also went on to surpass the sturdy wall of 15910 with some authority. There was no bigger extended move after this but Nifty managed to close at record highs by adding nearly half a percent to the bulls’ kitty

There were several attempts made in last month or so to go pass the level of 15910; but every time markets were struggling to do this. Yesterday, finally this level is breached and that too on a closing basis, bodes well for the bulls. Although the stellar move in IT basket initiated the up move in last couple of days, the real push from the financial space was needed to surpass the sturdy wall. In line with this, the BANKNIFTY managed to traverse 35810, which led to a breakout beyond 15910 for Nifty. The way we closed yesterday, 16000 is merely a formality now. If there is no aberration on the global front, we are likely to continue this optimism. So let’s keep our fingers crossed and hope to reach the milestone in the forthcoming session only.

As far as supports are concerned, 15900 followed by 15850 are to be seen as immediate levels. For the coming session, keep your eyes on the psychological level of 36000 for BANKNIFTY. The moment we stay beyond it, banking could easily start leading from the front.

Nifty Daily Chart

Nifty Bank Outlook - (35908)

Despite no major clues for global market, the BankNifty managed to start the weekly expiry day on a cheerful note. Post some hiccups in the early morning trade, the index regained strength to surpass the much awaited levels of 35800 with an ease. In fact, the banking index almost touched the psychological level of 36000 and then consolidated a the higher levels for the remaining part of the day. Eventually, we concluded the day with the gains of 0.67% tad above 35900.

Since June series, the banking index made couple of attempts to breach 35810 levels but failed. Finally, yesterday we not only outshined this level but also managed to close above same. For the forthcoming session, all eyes would be on the magical figure of 36000 mark; as any uptick beyond this we propel the next leg of rally towards the life time highs. For traders, yesterday’s strategy of buying ATM call when the BankNifty surpasses 35800 played well and similarly for today any move beyond 36000 shall be an opportunity to buy slightly Out-the-money call strikes.

Nifty Bank Daily Chart

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