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Sensex (54482) / Nifty (16221)

On Friday, post a gap up there was not much action seen in intraday for the key indices. However, Nifty extended its gains on Friday to reclaim the 16200 mark and ended the week by adding nearly 3% to the bulls’ kitty.

Technically speaking , the short-term structure seems bullish as the index managed to reclaim the psychological level convincingly. Also, the way the broader market has behaved towards the fag end of the week, it certainly augurs well for the bulls. Now since we are relatively in a safer terrain, 16000 – 15900 should now be seen as strong support zone for the coming week; whereas on the flipside, 16350 – 16430 are the next levels to watch out for as the higher range coincides with the ’89-EMA’ on the daily time frame chart. If global market supports then we may even go beyond 16430, which will trigger the next leg of the rally for our market participants. Until then although we remain sanguine, by no means one should become complacent here. It’s better to adopt a ‘One step at a time’ strategy and should look to book timely profits wherever it’s necessary as far as momentum trades are concerned.

During the last week, lot of thematic moves played out well and some may continue to do so in this week. But now one needs to be very selective and should also focus on the broader market, which is likely to provide better trading opportunities as compared to key indices.

Nifty Daily Chart

Nifty Bank Outlook - (35124)

The Bank Nifty index has seen a strong weekly closure with gains of over 4.70 percent and has also outperformed the benchmark index, uplifting the overall bullish sentiments.

On the technical parameters, the index is on a bullish spree with two consecutive gap-ups on the daily chart. At the current juncture, the index is placed just below the 200 DEMA, though looking at the recent price action, some assertiveness could be expected in the near term. On the higher end, the 35700-36000 mark is likely to act as immediate resistance that even coincides with the previous swing high, followed by the sloping trend-line. While on the flip side, 34400-34500 could be seen as a primary support zone for the counter. Looking at the recent price action and placement on the daily chart, the index is likely to remain upbeat, and any correction towards the mentioned support zone could be seen as an opportunity to go long in the index. Also, we firmly advocate focusing on a stock-centric approach where one could exploit immense opportunities.

Nifty Bank Daily Chart

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