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Sensex (55555) / Nifty (16496)

The global set up early morning was quite impressive and very much in line with this, our markets started the week on a pleasant note. However, we failed to hold these gains and without wasting much of a time, our markets not only erased all gains but also slipped slightly below 16400 in the opening hour. Fortunately, this dip was bought into and thereafter market managed to recover fair bit of ground. The volatility subsided post the midsession to witness range bound action throughout the second half. Eventually, the Nifty ended the session with nearly three tenths of a percent gains.

Yesterday although there was favourable cues from the global peers, our markets did not show real intent post the opening. Once again the major culprit was the banking index which has been very reluctant to perform well of late. With yesterday’s price action, we now have a defined range for the coming session i.e. 16400 – 16600. Only a sustainable move outside the range would decide the immediate trend for the market. Let’s see how things pan out, because if we have to regain any kind of strength, the banking index need to lift its spirit. Apart from this, the broader market continues to sulk, which certainly does not bode well for the traders. As of now, it’s advisable to stay light and try to pick right proposition for momentum trading.

Nifty Daily Chart

Nifty Bank Outlook - (35124)

The banking index start-off the session with an upside gap as indicated by SGX Nifty. However, these gains was short lived as we witnessed decent selling pressure to drag the index almost towards 34800 in initial two hours of trade. As we progressed, the index trimmed decent losses to reclaim 35100 on the closing basis. Recently, every attempt of recovery towards 36000-36300 has been unsuccessful and until we don’t see any sustainable move beyond these levels we would advise focusing on other space which has been supporting the market. On the daily chart, the 89 Exponential Moving Average acted as a sheet anchor in the previous series and now its placed around 34650 which may now act support. Since last two sessions, we are observing decent buying interest around 34800-34900 zone. Hence, until we manage to sustain above 34600-34800 zone we would be hopeful but in case of any fall below this shall drag the benchmark below 16400. At this point in time, traders are advised to stay light and keep a close watch on above mentioned levels.

Nifty Bank Daily Chart

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