IGI Logo

Sensex (59463) / Nifty (17698)

The truncated week has started on an optimistic note, taking cues from the positive global bourses. The benchmark index Nifty50 has seen a decent gap up with the opening bell and carried its positive stature throughout the session. Though in midsession, the index witnessed a bout of correction that firmly got bought into by the sturdy bulls of the D-Street. The secular up-trend extended for another day, wherein the index gained nearly 0.72 percent and settled firmly above the 17800 level.

Technically, the market is in a secular uprun with no sign of any breather. At present, the index is hovering near the weekly sloping trendline, which might be seen as a sign of concern for the bulls. Even the consolidation post a head start could be seen as a sign of tentativeness at the higher grounds. Also, on the oscillator front, the index is ramping over the overbought zone; hence a bout of profit booking should not be ruled out. As far as levels are concerned, 17800- 18000 is likely to provide some hurdle for the bulls in the near future. On the contrary, 17550-17600 is expected to cushion any downside correction, followed by the strong base setup near the 17400 odd zone.

Nifty Bank Outlook (39042)

The BANKNIFTY started the week on a positive note in tandem with the benchmark index. In the initial trades, the lead got extended towards the cluster of resistance i.e. 39400-39500. Hence, the pace slowed down a bit after entering this territory. Eventually with a hint of profit booking at higher levels, the banking index ended the session with nearly half a percent gains.

The way this high beta index restricted its gains at higher levels, was no surprise to us. With reference to previous commentary, we still reiterate that it would be a daunting task to surpass the sturdy wall of 39400-39500. If it happens then one should brace up for a faster move towards 40000 and beyond. However till then it’s advisable to stay light and avoid creating aggressive bets for a while. Meanwhile the support is visible around 39000 - 38800 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

Above views are of the author and not of the website kindly read disclaimer