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Sensex (60079) / Nifty (17855)

The overnight global cues were positive and the SGX Nifty was trading above 18000 hinting at a positive start. However, the Nifty failed to capitalize on the cues and started the day marginally positive around 17930. The index did not witness any further upmove from open, but it consolidated within a range of 100 points and ended on a flat note.

Inspite of some positive cues from the SGX Nifty, we did not see any significant momentum in the Nifty and it was rather a dull session for index traders. However, the stock specific activity was buzzing which provided better trading opportunities. In last couple of sessions, Nifty has seen some consolidation and is trading around the ‘20 EMA’ on the hourly charts which is the immediate support for coming session. The level around 17800 would be the intraday support below which, we can see some profit booking towards 17700 mark. On the flipside, 17950 would be the level to watch out on the higher side which is where we are witnessing some resistance since last two days. Above 17950, the index would resume the momentum to march towards the 18000 mark and beyond that 18080 would be the immediate level to watch out for. Keeping the above mentioned levels in mind, one should trade with proper risk management and look for stock specific opportunities for better trade set ups

The Auto index gave a breakout from its resistance yesterday and the stocks from this sector witnessed good buying interest. The Realty sector too continues with its recent momentum and showed outperformance. On the other hand, the recent outperformer IT space witnessed decent profit booking in yesterday’s session. Thus, sector rotation is clearly visible and hence, traders should be selective and trade with a thematic approach.

Nifty Daily Chart

Nifty Bank Outlook - (38171)

The global set up was just ideal yesterday morning to have a head- start at the opening of the monthly expiry week. Banking index looked promising right from the beginning and in fact, as the day progressed, became the major catalyst in holding the benchmark above its key supports. In the initial hour itself, BANKNIFTY registered a new high beyond 38300 to make its intention clear. Unfortunately there was no follow up to it as we saw banking space consolidating in a tight range for the remaining part of the session. After a long time, IT stocks looked a bit nervous yesterday and that is what troubling the benchmark a bit. Fortunately, banking stood firm to compensate for the overall pressure imposed by the heavyweight IT space. With yesterday's addition of nearly a percent, BANKNIFTY finally managed to close beyond the sturdy wall of 38000. This ideally bodes well for this space so as for the market. But you never know, we had seen some deceptive moves in banking over the past 3 - 4 months, we would wait for follow up throughout this entire week to gain some conviction.

For the coming session. 38400 - 38500 are to be considered as psychological barriers, whereas on the flipside, it would be important for it to not close below 38000 - 37500 in order to hold its positive posture.

Nifty Bank Daily Chart

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