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Sensex (57635) / Nifty (16986)

The Indian equity market had a volatile day of trade, wherein the benchmark index Nifty50 started on a bleak note and slipped to the low of 16850. But soon after, some resurgence was seen at the lower grounds, which led to a modest recovery and the index snapped its losing streak. Amidst the intense tug of war, the Nifty50 index concluded the weekly expiry session on a subdued note, with mere gains of 0.08 percent and settled a tad below the 17000 mark.

Technically speaking, there is no significant change in the view as the index is placed near the previous day’s close. However, with the formation of a ‘long-legged Doji’ on the daily chart, one may interpret a halt from the ongoing sell-off, which is an encouraging sign for the market participants. As far as levels are concerned, 16900-16850 is expected to act as the sacrosanct support in the near period. On the higher end, 17200-17250 is likely to act as an immediate hurdle, followed by the sturdy wall of 200 SMA, placed around 17400-17450 in a comparable period.

As we advance, one needs to keep close track of the strongly beaten-up heavyweight counters, as they could witness some recovery from hereon. Besides this, global development should also be tracked closely, as any favorable cues could boost market sentiments. Also, we would advocate traders to avoid aggressive bets for the time being and focus on stock-specific actions.

Nifty Bank Outlook (39133)

The Bank Nifty had a subdued beginning on the day of the weekly expiry, and the recent unease in the market caused prices to dip to 38613 during the day. However, there was a sharp rebound that helped to recoup the early losses, and prices remained in a range for the rest of the day, ultimately closing with a 0.21% gain at 39133.

This marks an end to the five consecutive days of losses. There is now positive divergence, with prices hitting a new low, but RSI not following suit. Additionally, the "Long Legged Doji" candlestick pattern seen yesterday suggests that bulls are showing some resilience at lower levels. However, the market is not yet completely stable, and prices must continue to sustain above yesterday's high of 39400 in the coming sessions, and close above 39950 to confirm a higher top on the hourly charts. Conversely, the low seen yesterday around 38600 - 38500 is a critical level to watch. Traders are advised to monitor these levels closely and take things one step at a time.

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