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Sensex (62682) / Nifty (18618)

The global markets continues to sulk; but despite SGX indicated a sluggish start, we completely shrugged off this negativity to kick off the session on a flat note. In the initial hours, the buying reinforced in some of the heavyweight names, which pushed index at new highs. We were about to reach yet another milestone of 18700, but all of a sudden the traders started feeling a bit nervous. This resulted in a modest profit booking to trim some portion of gains. Eventually, Nifty logs highest ever close above the 18600 mark.

In last couple of sessions, although the benchmark index made new highs, the real action has not been that pleasing. Generally, when benchmark index makes a new high, we get to see flamboyant moves in most of the heavyweight as well as mid and small cap counters. But this time, such convincing moves are clearly missing. Hence, in our sense, if broader market has to shine, we must surpass 18700 with some authority and ideally the close has to be at the highest point of the session; which is an indication of a strong buying interest. Hence, for the coming session, it’s important to keep a close tab on this scenario. As far as levels are concerned, 18700 – 18750 are to be seen as immediate junctions; whereas on the flipside, 18500 followed by 18400 becomes a strong demand zone.

Nifty Bank Outlook (43053)

Bank Nifty as well started on a flat note and as the day progressed, we witnessed positive traction during the first couple of hours. The momentum, however, started to cool down, and eventually, during the penultimate hour, we saw profit booking that erased a major part of morning gains to end flat a tad above 43000.

In our yesterday's outlook, we mentioned the overbought conditions and the scenario of booking profits at higher levels. Going ahead as well we may see some consolidation where dips should be taken as buying opportunities whereas on the higher side one can keep booking profit until the indicators cool down back to the normal zone. The primary trend remains positive, and we expect a further extension of this bull run and hence one should avoid contra bets and focus on stock-specific opportunities that can give outperforming moves. As far as levels are concerned, immediate support is at 42740 followed by 42600 whereas resistance is seen at 43350 and 43500 levels.

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