Yesterday morning, the global screen was extremely terrible and in line with SGX Nifty - Angel One
Sensex (58491) / Nifty (17397)
Yesterday morning, the global screen was extremely terrible and in line with SGX Nifty, we started the week around the 17450 mark. Surprisingly, after the initial hiccup, we witnessed a v-shaped recovery not only to erased losses but also to trade in the green above 17600. However, it could not decouple itself from the global peers for a long time as the markets took a U-turn post the mid-session, to finally sneak below 17400 on a closing basis.
Last two sessions’ (especially yesterday) price activity has certainly validated our recent cautious stance on the market. Since last week or so, we have been advising caution and booking profits in the rally. Percentage wise we may see Nifty falling merely a percent from the Friday’s close, but if we try to dive deep into it, we can see some sharp cuts in individual pockets. The Metal space is clearly one of them. It’s been enjoying its mega Bull Run till now, but the way some of the stocks plunged yesterday, it was intimidating. Also, the banking space which seemed to have come out of its slumber phase, again failed to live up to the expectations. Importantly, the broader market which has been the theme of last 15 months, has underwent some decent profit taking. Practically, the correction was overdue from a quite long time now, this may be the beginning of it. Let’s see how things pan out going forward.
Nifty Daily Chart
Nifty Bank Outlook - (37146)
We started-off the week with the downside gap tad below 37400 but recovered to reclaim 37800 in the initial two hours of trade. As we progresses, the banking index attracted fresh selling pressure to test the early morning lows and fall below 37100 mark. Finally, we concluded the volatile day tad below 37200 with the cut of 1.76% to Friday’s close.
Last week belong to banking space as we finally saw it coming off its slumber phrase but last two trading days price action was clearly disappointing. The PSU banking counters that we showing strength off late were the major dragger yesterday; whereas, heavyweight private banks like INDUSINDBK, AXISBANK, ICICIBANK and HDFCBANK too plunged in the range of 1%-4%. Surprisingly, the index has concluded the day between 37100-37200 which acted as a resistance during first half of September month and hence it would be interesting to see how things get pan out going forwards.
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