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Sensex (51325) / Nifty (15119)

We had a flat opening despite some sluggish cues from the major Asian bourses. The benchmark consolidated with a positive bias during the first half. However, the selling not only occurred post mid-session; but also aggravated to test the sub-15100 level.

Fortunately, the damage was not done further as market managed to stabilise in the concluding hour to defend the psychological mark of 15100 on a weekly expiry close. Since last three days market has been experiencing some pressure at higher levels and this is what we have been alluding to in our previous commentaries.

In the morning session, Nifty made a move towards the mentioned resistance zone of 15245 – 15315. Since the move was lacking strength, the selling started after testing the lower range of 15245, which eventually resulted in a decent intraday profit booking. Now, although market looks a bit tentative, it is nowhere close to the trend reversal or sell-off. Rather it needs to be construed as a minor profit booking only. For the coming session, 15050 – 15000 are the levels to watch out for and the first sign of weakness would start only after convincingly breaching the 15000 mark.

On the flipside, 15175 – 15250 is to be seen as immediate hurdles. Yesterday, most of the pockets remained under pressure throughout the session; but the PSU space seems to be on a roll. After a long period of underperformance, we are seeing signs of revival in these names as the recent mesmerizing rally still continues despite the broader market sulking a bit.

Nifty Daily Chart

Nifty Bank Outlook - (36587)

The bank nifty index started on a mild positive note however from the word go it witnessed selling pressure and remained under pressure for the major part. In the second half, some consolidation was seen before ending with a loss of 0.88% at 36587.

For the last few sessions, it has been a mixed bag of pictures as we have seen underperformance by the heavyweight private banks whereas strong outperformance is seen by the PSU banking space. The bank index is however breaking its intermediate support with ease and the next support levels to watch out will be 36000 and 35700 levels.

Traders are advised to continue with the stock-specific approach however one needs to avoid aggressive bets. On the flip side, immediate resistance is now placed around 36850 and 37100 levels.

Nifty Bank Daily Chart

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