IGI Logo

Sensex (56580) / Nifty (16954)

The week started on a weak note as indicated by SGX Nifty and in the opening trades itself Nifty was down below the psychological level of 17000. The sell-off extended to test sub16900 levels and post some choppy intra-day move within a 100 points range Nifty eventually ended with a loss of 1.27% at 16954.

With yesterday’s selloff, Nifty has reached a key support level at 16900 formed by 50% retracement of the recent rally seen from the March swing low of 15671 to a recent high of 18114. During the day, even though the momentum was mainly on the downside there were a couple of intraday attempts of bouncing from the mentioned support levels. Now, It would be crucial to see how things pan out in today’s session and if the Nifty sustains below 16900 then one should brace up for challenging times going ahead where 16600 and below levels may be retested. The only bright picture for the session was the Bank Nifty which ended slightly in green and showed some relative strength as compared to the benchmark. If the Nifty has to hold the key supports then the bank nifty plays a key role and needs to show a strong performance from hereon.

On the flip side, the bulls have a daunting task as resistance can be seen at every 100 points (rounded off), and for them to make a comeback have to close above 17400 with some authority. Immediate, resistance is seen around, 17050 and 17200 levels. As far as trading is concerned, opportunities are seen on both ends but one needs to be very fussy in-stock selection

Exhibit 1: Nifty Daily Chart

Nifty Bank Outlook - (36082)

Friday’s massive correction in US bourses led to gap down opening in our markets to kick-start the monthly expiry week on a timid note. The banking index too opened lower but it immediately managed to recover fair bit of ground from its early morning gains; courtesy to stellar set of numbers over the weekend from banking giant ICICI Bank. During the remaining part of the session, the BANKNIFTY showed tremendous resilience to conclude the session with negligible gains. In the challenging environment yesterday, the banking space showed its mettle and managed to restrict the damage in benchmark index Nifty. So it appears that BANKNIFTY is showing some respect to 35500 on an intraday basis and 36000 on a closing basis. The coming session would be quite crucial; because if the recovery mode extends and banking index manages to reclaim the 36500 mark, we could see positive sentiments rubbing off on other sectoral baskets as well. Let’s see how things pan out and hope for some relief move in HDFC twins who have been major draggers of late

Exhibit 2: Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

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

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer