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Sensex (58927) / Nifty (17547)

We had a flat to positive start yesterday in line with mixed global cues. However during the remaining part of the session, the index did nothing as it literally kept vacillating within a slender range with no clear direction as well as momentum. Eventually Nifty ended tad below 17550 with negligible losses.

The kind of price activity we witnessed yesterday was a clear indication about market participants waiting for the outcome of the Fed policy. Since there was no major movement during the session, the chart structure remains unchanged and so as our commentary. For the coming session, 17610 – 17650 would be seen as immediate hurdles; whereas on the flip side, a break below 17500 would result in retesting of Tuesday’s low of 17400 – 17350.

For a short term point of view, 17350 – 17250 is to be seen as key support zone. Any aberration on the global front may result in challenging these levels and hence, it would be handy to know in advance the possible reaction ahead of any such event. Since there is a penultimate weekly expiry in our market as well, we may see higher volatility. So traders should take a note of all these developments and trade accordingly.

We continue to remain cautious on the market and advise against creating aggressive bets for a while. In order to regain the confidence, another couple of days’ strength is quite crucial for the market. Also, all eyes on global market as the next path of action is still to be dictated by them only.

Nifty Daily Chart

Nifty Bank Outlook - (36945)

Post Tuesday’s sharp recovery, we began yesterday’s session on a slightly positive note and inched beyond 37300 but in absence of buying interest the banking index we saw it correcting towards 36900.

As we progressed, index attempted to recoup some of the losses but failed to conclude the session tad below 37000 mark. Similar to previous trading session, the BankNifty attracted selling pressure after entering 37300 plus zone and clearly underperformed the benchmark index with decent margin.

During start of September series 37000-37200 zone acted as a stiff hurdle and ideally same levels should be acting as strong demand zone. But, unfortunately without much efforts we could see the banking index sliding below 37000 mark that too on the closing basis, which is not at all appealing. Thus, we remain cautious especially in this space and would advise traders avoiding any bullish bets and prefer buying ATM puts incase we see the BankNifty around 37200-37300 today.

 Nifty Bank Daily Chart

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