IGI Logo

Sensex (49858) / Nifty (14744)

During the last week, we started the proceedings on a flat note on Monday as there was no major trigger on the domestic as well as global front. However as the week progressed, market started drifting lower. The real momentum was seen in the latter half as we saw Nifty sliding below 14400 on Friday.

But on the same day, we witnessed a smart recovery in the market to not only pare down all losses but also to close with more than 150 points gains. Due to this tail end surge, the Nifty was well off its morning’s low to reclaim the 14700 mark. Since last few days, key indices were range bound but if we meticulously observe the price action of individual stocks (especially from the F&O universe), some sort of distribution was clearly visible.

The decline in Nifty and other key indices in the latter half of the week was the outcome of the overall selling happening in the individual stocks. In the process, the index managed to fill the gap of 14470 – 14330 created on the following day of Union budget (February 02, 2021). Since market was a bit oversold, some sort of rebound was evident; but the kind of vshaped recovery we witnessed, was clearly unexpected to us.

Hence, although our recent cautious stance has played out well, we need to see how market behaves in the first half of this week. On the higher side, 14875 – 15050 are the levels to watch out for; whereas on the lower side, 14450 – 14350 becomes a key support zone. The major corrective move is possible only below 14330, until then expect the index to remain in a broad range

Traders are advised to be stock specific for a while and till the time, Nifty does not surpass 15050, we are likely to see some pressure at higher levels. Hence, one should remain light and trade with proper risk management as we step into the monthly expiry week

Nifty Daily Chart

Nifty Bank Outlook - (34162)

On Friday, the Bank Nifty as well started on a negative note and slipped further to mark an intraday low of 33361. Post the first hour of weakness, the bank index witnessed a bounce back along with the broader markets that not only erased the morning loss but to end with gains of 0.90% at 34162. With the oscillators in the oversold zone and prices approaching the key support zone, a bounce-back was evident.

Now the prices have closed just below the 50SMA and the follow-up move post the bounce is crucial. We sense the previous support around 34700 - 34800 can now act as resistance whereas 33300 remains a strong support zone. Traders are advised to have a stockspecific approach however we remain cautious and hence avoid aggressive bets.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf

SEBI Registration number is INH000000164

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