IGI Logo

Sensex (53761) / Nifty (16049)

On Friday, Nifty started on a positive note however similar to the previous few session it witnessed profit booking at higher levels to slip back below the 15950 levels. Fortunately there was a strong buying seen during the last hour that pushed Nifty higher to eventually end with gains of 0.69% at 16049.

We had lethargic moves in key indices throughout the last week; but we were certainly fortunate enough not to have wild swings and uncertainty like the US bourses. In fact, despite mild weakness, our markets managed to defend crucial levels and eventually ended the week with some promise. The global environment is still not conducive; but our markets are not willing to give up as they continue to attract some buyers at lower levels. Technically speaking, 15850 – 15950 has now become a sacrosanct zone for the this week and if global markets support, we may see markets inching northwards. Hence, one should continue to remain positive till the time we do not sneak below it on a sustainable basis. On the flipside, there are lot of headwinds that are not wiling markets to stay at higher levels. For the this week, 16150 – 16250 are to be seen as immediate resistances and only a move beyond this, would trigger some broad-based buying in the market.

At this juncture, it’s advisable to stay light and identifying the apt themes remain a key for momentum traders. Sectorally, banking and IT kept sulking and hence, there participation is must to lift the overall sentiments in traders’ fraternity. Also, the broader end of the spectrum showed some interesting signs on Friday as we can see NIFTY MIDCAP50 index closing at six-week high. Traders can focus on cash segment counters as well which are likely to provide better trading opportunities going ahead.

Nifty Bank Outlook - (34683)

In our previous outlook, we had mentioned a strong support zone around 34300 - 34400 formed by a bullish gap and key averages like 20 and 50EMA. On Friday, there was some respite seen as the bank index tested this level, and going ahead as long it holds we remain upbeat. As mentioned above, if global markets supports, the banking space is placed at key levels and if bulls have to make a come back this is the ideal level. However, traders should also consider the other part of picture where if the said levels are broken then one should expect further downside in the near term. On the higher side, 35000 - 35300 remains a key resistance level.

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