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Sensex (59029) / Nifty (17624)

For the third consecutive session, we witnessed a gap down opening on the back of nervous global cues. Similar to previous sessions, the early morning dip once again got bought into. Thereafter, the range bound action continued with lot of stock specific moves to attract the market participants. Eventually, the Nifty ended the session marginally in the range above the 17600 mark.

The overall strength in our domestic market is providing the cushion at lower levels; whereas the uncertainty in US bourses is not letting us surpass the higher range. In our sense, it’s a matter of time we would see oversold US markets to rebound, which will provide the much needed impetus to our key indices. As far as levels are concerned, the sturdy wall remains unchanged at 17700 - 17800; whereas on the flipside, 17600 followed by 17500 are to be treated as key supports.

Nifty Bank Outlook (39456)

Bank Nifty as well started with a strong gap down opening however there was no follow-up selling and post a modest recovery it remained within a slender range to end with a loss of around half a percent at 39456.

If we meticulously observe the daily chart, not much is happening pricewise since the last few sessions, and we remain in a consolidation phase. The undertone remains bullish and hence we are not witnessing any runaway sell-off post weak openings; in fact, smart intraday traders are capitalizing on this to create long trades. For the weekly expiry, we expect this trend to continue with the psychological level of 40000 to act as immediate resistance whereas, on the flip side, 39250 - 39000 is the strong support zone. We advise traders to use dips as a buying opportunity and rather than focus on index trades one should rather consider stock-specific trades that are giving outperforming opportunities

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