IGI Logo

Sensex (51849) / Nifty (15576)

Yesterday’s session started on a sluggish note owing to mixed global cues. As the day progressed, the index extended its losses a bit due to some profit booking in the few heavyweights. However post the mid-session, the sudden buying emerged at lower levels which pulled the index higher to conclude the session with a negligible gain in Nifty.

The kind of corrective move we were witnessing in the first half yesterday, by no means it should be considered a major fall or a sign of caution. The market has seen a steady up move recently and in the process has managed to clock fresh record highs, so such in between breathers are very much evident. Rather it should be considered a healthy sign. In our previous commentary, we had mentioned a key support around 15430 – 15400 and if we look at yesterday’s recovery, it has come precisely after nearing this support zone. We continue to remain upbeat as long as we do not witness a major trend reversal and until then one should use intraday dips to go long in the market.

As far as support levels are concerned, 15430 – 15400 has now become a sacrosanct zone; whereas on the flip side, 15660 – 15700 are the immediate levels to watch out for. From here on, index specific trades are not going to be smooth and in fact, one needs to be very selective when it comes to stock specific trades as well. We reiterate on avoiding aggressive bets and it’s advisable to follow a proper risk management.

Nifty Daily Chart

Nifty Bank Outlook - (35374)

Yesterday, the Bank Nifty index started on a mild negative note, and then it remained in a range amidst stock-specific action. In the penultimate hours however a strong upmove was seen to eventually end at the highest point of the day with marginal gains at 35374.

Technically not much has changed and it seems the key indices have entered into a consolidation phase. As mentioned in our previous outlook as well, the Bank Nifty has been inconsistent recently but we remain upbeat and expect outperformance in the near term. Yesterday, we witnessed a mixed bag of pictures as some stocks seemed under pressure while some stocks outperformed especially the PSU space. Going ahead, the approach will remain to have stock-specific trades within this basket as they are likely to give outperforming opportunities. As far as levels are concerned, 35800 followed by 36200 is the immediate resistance whereas support is placed around 35000 - 34600.

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