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Sensex (58191) / Nifty (17315)

Despite SGX NIFTY was indicating a sluggish start, our markets opened with marginal gains on Monday by completely shrugging off global cues. However, since the global developments over the previous weekend were a bit unfavorable, we failed to capitalize on this promising start, because things had to come to an equilibrium and hence, we witnessed a sustained selling throughout the session. Fortunately, the bulls made a remarkable comeback on the very next day to reclaim the 17200 mark. In the latter half, although we tested 17400 after a one-day break, market saw some sluggishness to conclude the week above 17300 as bulls managed to pocket more than a percent on a weekly basis

With reference to our previous commentary, we had mentioned how ‘Bullish Engulfing’ pattern formed last Friday can provide some strength in our market. Although, Monday’s session was a bit intimidating, the configuration remained intact and as the week progressed, it certainly proved it’s worth. Now, since Nifty has managed to surpass 17200 and is maintaining it’s position above this, 17200 – 17000 now becomes a sacrosanct zone for our market. Additionally, we can now observe yet another technical indicator i.e. positive crossover in daily ‘RSI-Smoothened’ is likely to provide the helping hand for bulls.

Nifty Bank Outlook (39178)

Unlike the benchmark, Bank Nifty started the truncated week on a negative note and witnessed some follow-up selling on the inaugural day. But this was followed by a good bump up opening on Tuesday, resulting into a giant leap beyond the 39000 mark. The similar sort of opening was witnessed after a mid-week holiday to reclaim 39600. However, due to some nervousness at higher levels, traders opted to take some money off the table. In the midst of a currency related weakness, the banking index concluded the week on a positive note by adding more than a percent to the bulls’ kitty

Technically, the banking index has precisely rebounded from the support zone around ‘89-EMA’ on the daily chart and the formation of strong bullish engulfing candle occurred last Friday has proved its significance. In addition, the gap area created around 39230 - 39420 odd zone has also been filled on Thursday. On the weekly time frame as well, the BANKNIFTY has been finding support around the ‘20-EMA’ which again is a sign of strength.

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