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Sensex (57990) / Nifty (17100)

Our market witnessed a modest recovery on Friday, which led to a sense of resurgence from the lows. Eventually, the week closed in negative terrain, shedding 1.80 percent from its previous week’s closure and Nifty settled at the 17100 level.

The intense sell-off in the global markets dented our sentiments, mirroring which Nifty tumbled below the 200 SMA. However, the last trading session could be seen as constructive development for our markets as the index revived from the crucial support of the 17000-16900 zone. On the technical front, we are not entirely out of the woods and the broader trajectory remains tentative, but we may expect some bounce in the near term. As far as levels are concerned, the recent swing low of 16900-16850 is likely to act as the sheet anchor’s role, and it is highly anticipated that the dip would augur well for the bulls. On the flip side, the 17200-17250 is the immediate hurdle, followed by the sturdy wall of 200 SMA placed around the 17400-17450 odd zone

Nifty Bank Outlook (39598)

The recent SVB fiasco caused pressure across the global banking industry, leading to a decline in our banking counters at the start of the week. However, there was some relief at lower levels during the weekly expiry, and on Friday, with improved global cues, Bank Nifty made a strong rebound and ended the week with a loss of around 2% just below 39600

Bank Nifty broke below the recent swing low during the week, but as the momentum indicator did not make a new low, there was a clear positive divergence. Considering the divergence and oversold conditions, we advised traders to avoid adding fresh short positions. On Friday, there was a strong rebound, and intraday dips were being bought, indicating a positive outlook for bulls after the recent trend of bounce getting sold into. Prices were able to defend February's swing low and 50EMA on a weekly closing basis, which was a positive development. We expect this bounce back to continue, but caution traders to avoid complacency and to use dips as a buying opportunity, with 39200 - 39000 being considered as immediate support.

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