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Sensex (54885) / Nifty (16352)

Following the positive momentum from the May expiry session, Nifty started with a gap up on Friday. This was then followed by intraday dip however this dip got bought into as Nifty added another1.13% to end tad above 16350.

In last three consecutive weeks, our markets made several attempts towards 15900 – 15700; but fortunately, despite unfavourable global environment, our market showed tremendous resilience at lower levels. In fact, with last two days’ smart recovery, our market seems to have weathered the storm, at least for a time being. Some of the heavyweight spaces like IT and Metal were deeply oversold and some sort of relief was very much overdue. Apart from this, the banking proved its mettle as we saw sheer outperformance from this heavyweight basket to pull the market from a difficult situation. Now, we are back to higher end of the recent range i.e., 16400 and it would be interesting to see whether Nifty surpasses it or not. In our sense, it’s a matter of time and we would see Nifty traversing this level to test 16600 – 16800 in this week.

Despite all this, we are still not completely out of the woods yet, because globally there is yet to stabilize things. Hence, we advise traders not get complacent and should keep assessing situation on a regular basis. As far as immediate supports are concerned, 16200 followed by 16000 should provide cushion on any intra-week weakness. Hopefully, global markets come out of the challenging phase soon, which will attract strong buying in our markets going ahead.

Nifty Daily Chart

Nifty Bank Outlook - (35613)

The Bank Nifty index has seen a positive closing for the consecutive week and soared over 3.90 percent in the entire week. The index has seen massive traction in the latter half of the week and has significantly outperformed the benchmark index, uplifting the overall bullish sentiments.

On the technical parameters, the index is hovering near the cluster of its major exponential moving averages on the daily time frame. At the current juncture, the index is placed just below the 200 DEMA, though looking at the recent price action, some assertiveness could be expected in the near term. On the higher end, the 36000 mark is likely to act as immediate resistance, breaching which 1000 points of upside room is visible in the index. While on the flip side, 34800-35000 could be seen as an immediate support zone for the counter. Looking at the recent price action and placement on the daily chart, the index is likely to remain upbeat and any correction towards the mentioned support zone could be seen as an opportunity to go long in the index. Also, we firmly advocate focusing on a stockcentric approach where one could exploit immense opportunities.

Nifty Bank Daily Chart

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