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Sensex (62678) / Nifty (18660)

Once again, we witnessed positive traction in U.S. markets overnight and this time it was after the cooling down numbers of CPI. Following this, the Asian markets and SGX Nifty were in a cheerful mood. Despite this we had a gradual start for the day and as we moved ahead, the benchmark remained within a range to eventually end near the opening levels with gains of around 0.28% at 18660.

Technically, prices have closed above 18650 which we felt was crucial to trigger back momentum in the bulls’ camp however not much has changed. It seems traders opted to keep positions light ahead of the key FOMC meet. We continue to remain upbeat on the markets and sense that the higher bottom is in place around 18350 levels. In such a scenario, one should continue with the recent stance of buying on dips with immediate support seen in the range of 18540 - 18500 levels. On the higher side, 18780 - 18840 can be considered as immediate resistance on the weekly expiry day. Even though there was no major action on the Index front, mesmerizing moves were seen in individual counters as the NIFTY MIDCAP 100 broke above the recent congestion zone and is trading at a fresh 52- week high. Traders should continue to focus on this basket as trading opportunities from this basket can give staggering returns in the near term.

Nifty Bank Outlook (44049)

Bank Nifty index started the day with a decent gap up and continued its northward journey consecutively for the fifth trading session. The index remained in a slender range throughout the trading session and settled with mere gains of 0.23 percent, a tad above the 44000 mark.

The ongoing price action construes a robust setup for the index and is highly anticipated to continue the same in a comparable period. At present, the unfilled gap around the 43750 odd zone is likely to cushion any blip, while the 43500 mark is likely to act as the sheet anchor. On the flip side, the fresh breakout has opened the potential for the index to march toward the 44350-44600 zone in the coming period. The overall structure is buoyant, where any minor correction could be seen as an opportunity to add fresh longs in the index.

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