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Sensex (61150) / Nifty (18212)

Yesterday morning, the global set up was just ideal to have a head-start beyond the key resistance level of 18100. Post the gap up opening, our markets had a brief period of consolidation which was then followed by a slow and gradual move towards the 18200 mark. With the help of the broad based buying, the Nifty eventually ended the session above 18200 with some authority by adding over eight tenths of a percent gains.

The global strength provided the much needed impetus to go past the sturdy wall of 18100. Now due to this development, the base shifts higher to 18000, which certainly bodes well for the bulls. Before this, 18100 is to be considered as an intraday support. On the flipside, although there is no major barrier before the record high of 18600, the move may not be swift in nature. So one needs to go one step at a time from hereon. For the coming session, the next level to watch out for would be around 18350 and as of now, there are no indication that we would overcome this on the weekly expiry day. The pragmatic approach for traders would be to book profits around the intraday resistances and buy as close as possible to important supports.

We reiterate that the real action lies in individual stocks and hence, one should keep concentrating on such potential movers in order to fetch decent gains.

Nifty Daily Chart

Nifty Bank Outlook - (38728)

The banking index is in a stellar bull run as it inched higher for the fourth consecutive session. The index has surged nearly 0.74 percent to settle at 38728. The technical setup of the index on the daily time frame with a runaway gap could be considered a vital sign once a follow-up buying weighs in.

The index has settled on a strong note as the 21 DEMA has witnessed a positive crossover to its 100 DEMA, signally a bullish signal. Even, the MACD is placed in a comfortable bullish trajectory affirming the trend to continue in the near future. However, on the contrary the oscillator indicator, 14 days RSI is nearing the overbought zone suggesting a cautious sign for the market participants. At the current juncture, the immediate support for the index is placed around 38000 followed by the strong demand of zone 37500, while on the flip side, 39000 could act as a stiff hurdle for the index. Going forward, it is advisable to buy on the dips and sell on the rise until a decisive breach above the mentioned resistance occurs in such a market scenario.

Nifty Bank Daily Chart

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