IGI Logo

Sensex (60298) / Nifty (17956)

The weakness in the global market led to a mild start in Indian equities, wherein the benchmark index opened lower on the weekly expiry session. Soon after, the bulls grabbed the opportunity and made a modest recovery in the index, but the correction got triggered again at the higher levels. Amidst the intense tug of war throughout the day, the bulls retaliated firmly and levitated the index to day’s high. The winning streak continued for the eighth consecutive session, wherein the Nifty concluded the day with a mere gain of 0.07 percent and settled a tad above 17950 level.

We allude to our previous commentary on not being complacent, as the index has seen a strong vertical movement in the past couple of weeks. However, the undertone is expected to remain upbeat till it sustains above the 17500 odd zone, but some tentativeness could be sensed as the index approached near the psychological mark of 18000. On the technical front, 18000-18150 is seen as the immediate hurdle for the bulls, while 17830-17765 is the immediate support. Looking at the technical setup, the market is likely to trade within the mentioned range until a decisive breakout is not seen on either side in the near period.

Nifty Bank Outlook (39656)

The BANKNIFTY too had a sluggish start yesterday along with the benchmark. In the initial trade, buying emerged at lower levels to surpass the 39500 mark. However, around the midsession, we witnessed a brief period of profit booking which dragged the index in the negative terrain. But it wasn’t done with its twists and turns as we once again witnessed strong buying picking up towards the fag end. In the process, BANKNIFTY ended the session at day’s high by adding another half a percent.

Since market is at such elevated levels, we are observing such swings. Although bears are trying to show their presence, eventually the bulls are in a dominant position. The BANKNIFTY has now surpassed 39500 on a closing basis but we still do not want to get carried away. Because from hereon the moves are not going to be as smooth as it has been over the past 3 weeks. We advise traders to stay light at higher levels and be prepared for volatile swings on both sides. As far as levels are concerned, 39800-40000 to be seen as immediate resistances; whereas on the flipside, 39300-39000 to be treated as intraday supports.

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