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Sensex (57420) / Nifty (17086)

We started the week on a nervous note as indicated by the SGX Nifty. The selloff aggravated mainly in the financial space which resulted in re-testing of sub-16850 levels. Fortunately the initial nerves settled down after half an hour of knee jerk reaction. This was followed by a sustained buying throughout the remaining part of the session to conclude with nearly half a percent gains by reclaiming the 17000 mark with some authority.

As we stepped into the last week of the calendar year, market seems to have entered a consolidation phase. With yesterday’s price activity, 16900 – 16850 has become a sacrosanct zone at least for the monthly expiry and we do not expect it to be breached immediately. However on the flipside, we are now nearing a key resistance zone i.e. 17200 – 17300. Any sustainable move beyond this would confirm a short term bottom in the market and hence, it would be important to see how things pan out over the next few days. Meanwhile, traders are advised to keep focusing on individual themes which are proving excellent opportunities for momentum traders.

Nifty Daily Chart

Nifty Bank Outlook - (35058)

In the last trading session, NIFTY BANK has seen buying interest at the lower zone and outperformed the benchmark index. At the current juncture, the index is hovering at the crucial resistance zone of its long-term exponential moving average, and closure above the same could only trigger a fresh round of long addition in the counter.

Although, the last week of the calendar year 2021 has started on an optimistic note wherein the index recouped all its early losses to reclaim the 35000 mark. On technical parameters, the lower band of the Bollinger is expected to provide a cushion, while on the flipside, 35500-36000 still holds the crucial hurdle zone for the bulls to regain their strength. Hence, it is advisable to stay cautious at these levels and focus more on selective counters.

Nifty Bank Daily Chart

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