IGI Logo

Sensex (50792) / Nifty (15031)

During the last week, trading started on a flat note but as the week progressed, we witnessed a gradual up move in the market. The optimism in global peers (especially the US bourses) was the main catalyst behind this strength in our markets. Almost each session during the week started with a decent upside gap and importantly, it managed to hold on to it. The similar sort of strength was visible on Friday as well at the opening as Nifty was very much on the move towards its record highs. However, all of a sudden traders chose to take some money off the table and hence post the mid-session, we witnessed a sharp decline to not only pare down all gains but also to sneak well inside the negative terrain.

Barring second half of Friday, market almost had a unidirectional move throughout the truncated week. However, post the gap up, we did not see any major action in indices as they kept oscillating within a small range by maintaining their positive posture. The real action was seen in individual themes which also were missing on Friday. Now with Friday’s move, 15200 – 15400 has become a sturdy wall for Nifty and it would really be a daunting task surpassing this in the absence of any major trigger on the global as well as domestic front. On the flipside, the key support is placed at 14925 – 14850. A sustainable violation of these supports would lead to extended correction and in that case we may see Nifty sliding towards 14700 or may even test recent swing low of 14467. If we meticulously observe the hourly chart, a breakdown from the ‘Rising Wedge’ pattern is clearly visible, which certainly does not bode well for the bulls. All eyes would be on the global peers as they play a vital role in dictating the near term direction for our market.

Nifty Daily Chart

Nifty Bank Outlook - (35497)

On Friday, Bank Nifty witnessed a huge gap up opening however it lacked follow-up buying and right from the word go it slid lower to erase all the morning gains and in fact ended with a loss of 1.23% at 35497. For the last few sessions, we have been mentioning a 'Descending Triangle’ pattern and on Friday after opening precisely around the higher end of the pattern the bank nifty witnessed a selloff. Now the momentum is back with the bears and prices have come closer towards the lower end of the mentioned pattern. For the next few sessions, the 34600 - 34700 levels that is the lower end of the pattern will be closely watched as a close below the same can trigger a strong correction mode. On the flip side, any bounce are likely to get sold into unless we see a sustain close above the 36500 levels. Besides, we have also witnessed an increase in volatility hence traders are advised to keep positions light and avoid undue risk.

Nifty Bank Daily Chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf

SEBI Registration number is INH000000164

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer