IGI Logo

Sensex (59031) / Nifty (17557)

Monday night, US markets had one more round of selling which dampened the overall sentiments of traders across the globe. Tracking these cues, our markets too started off lower to hasten towards the key support of 17350. This being the ’20-day EMA’ level, the correction halted in the opening hour which was then followed by a sharp recovery to not only erase all losses but also entered the positive terrain. The similar sort of swings on either sides repeated during the latter half as well. Eventually, the action packed session eventually ended with half a percent gains tad above the 17550 mark.

The Nifty has completed a price correction of 650 points in merely three sessions i.e. nearly 3.50% from the Friday’s high of 17992.20. In our previous commentary, we had mentioned about the support zone around 17400 – 17350. Since it coincided with the key moving average (20-EMA), the oversold market attracted some buying at lower levels. With the help of RIL and banking space who became the real protagonists, the benchmark index Nifty managed to close almost at day’s high. Although, the rebound was very much on expected lines, one should avoid getting carried away with this. We are still not out of the woods yet till the time few important levels are taken out in the upward direction. As of now, 17650 – 17710 is to be seen as immediate resistance zone and momentum traders should ideally look to lighten up longs around it. On the flipside, 17525 – 17450 are to be seen as immediate supports.

Nifty Bank Outlook (38698)

Similar to the previous session, Bank Nifty started with a huge gap down opening however right from the start there was buying momentum that not only erased the morning lost ground but entered well into positive territory. The action was however not done yet as we witnessed wild swings on both sides after that and with bulls having the upper hand the bank index eventually ended the volatile session with gains of a percent tad below 38700 levels.

In our yesterday's outlook, we had clearly stated the last two session's weaknesses as just a price correction and that the undertone remains bullish. This point was clearly validated as twice there was strong buying seen yesterday at the lower levels. Now we are witnessing a strong bullish candle on the daily chart that is seen on the key support of 20EMA and hence we sense that any dips in the near term are likely to get bought and yesterday's low around 38000 to act as sacrosanct support. On the higher side, immediate resistance is seen around 39070 and 39300 levels. Even though the momentum is back with the bulls, one should avoid getting complacent and need to be very selective as global markets remain highly volatile.

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