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Sensex (58136) / Nifty (17345)

The Indian equity market has witnessed a slender range-bound movement in yesterday’s session until the fag end buying interest levitated the benchmark index. The index went to the day’s high during the last trading hour but was soon followed up by some profit booking. With All the actions throughout, the benchmark index continued its positive stature and maintained its bullish move for the fifth straight day. The Nifty witnessed a mere gain of 0.03 percent to settle a tad below the 17350 level.

Technically, the bullish momentum remains unchanged with the daily gains in the broader market. We allude to our previous commentary of not being complacent and staying watchful as the index showcased some lackluster moves in yesterday’s session that might attract a round of profit booking. However, the undertone is set in favor of the bulls, and any minor correction could be seen as an opportunity to go long in the index. As far as levels are concerned, the 17450-17500 odd zone is expected to act as an immediate hurdle for the index. On the contrary, 17200 is expected to cushion any minor correction, while the unfilled gap around the 17000 mark holds the sacrosanct support zone for the index

Nifty Bank Outlook (38024)

The global markets were a bit nervous yesterday especially some of the Asian bourses, which resulted in a soft opening in our market. After the initial dip, market stabilised at lower levels which was then followed by a series of higher highs and higher lows throughout the remaining part of the session. Unfortunately due to some tail end profit booking, the BANKNIFTY concluded the session slightly above the psychological mark of 38000.

Our markets had a peculiar price movement yesterday where we witnessed sharp profit booking on couple of occasions after a good rally. First one around the midsession and then towards the fag end, we had a sharp downtick to pare down major chunk of gains. BANKNIFTY being the high beta index, saw bigger swings as compared to the Nifty. Traders should now get accustomed to such kind of price movement, because the easy trade in market has certainly gone. From hereon, we may either see time wise consolidation or a price wise profit booking, like yesterday. It’s advisable not to trade aggressively in indices for a time being. The ideal strategy would be to buy as close as possible to the supports and vice versa. As far as levels are concerned, 38200 – 38500 seems to be a congestion zone; whereas on the flipside, 37800 – 37600 are to be seen as immediate supports.

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