IGI Logo

Nifty :23644

Technical Outlook

Day that was…

Indian equity benchmarks witnessed profit booking amid quarterly rebalancing, with the Nifty closing at 23,645, down 0.71% for the session. Market breadth was negative, with 947 advances against 1,913 declines. On the sectoral front, the Pharma, IT and FMCG sector was up by 1.01%, 0.57%,0.31%. However, the Realty, Auto, Metal, PSU Bank sector saw a decline of -1.54%, -1.43%, -1.27%, -1.18%

Technical Outlook

• After Initial decline index regained upward momentum and made a high of 23,915. However, lack of follow through strength resulted into profit booking. Downward momentum accelerated on the breach of Friday’s low of 23800. As a result, daily price action formed a bear candle, indicating extended breather while trading in the vicinity of 200 days EMA.

• Key point to highlight over past five sessions is that, despite multiple attempts Nifty has been closing below key hurdle of 23900 levels. The lack of follow through strength signifies prolonged consolidation in the broader range of 23,200– 23,900 wherein stock specific action would prevail. Only a decisive close above 23900 level would open the door for next leg of upside.

• On the downside, the key support threshold is placed at 23,200 as it is confluence of 61.8% retracement of the JunSept rally (21,281–26,277) and the 52-week EMA placed around 23,350.

• In tandem with the benchmark, broader market extended breather while sustaining above 100 days EMA. Hence, for the resumption of up move, a decisive close above last week’s high would be required. Else, continuation of stock specific action amid sector rotation

Nifty Bank : 50952

Technical Outlook

Day that was :

Bank Nifty witnessed rangebound activity and settled the volatile session on a negative note at 50952 , down 0 .70 % . Meanwhile, Nifty PSU Bank index relatively underperformed the benchmark by closing negative by 1 .18 %

Technical Outlook :

• The Bank Nifty opened the session on a positive note and witnessed a buying momentum in initial hours where it breached the resistance mark of 51600 . However, it failed to sustain at higher levels and witnessed a profit booking in the second half of the day to close the session on a negative note . The index witnessed volatility throughout the day due to quarterly rebalancing resulting into the formation of high wave candle .

• Key point to highlight is that, the index is consolidating within a broader range of 51600 -49700 since past seven sessions wherein it has constantly witnessed selling pressure from the upper end of the range on multiple occasions . The index need to decisively close above the upper end of the range (51600 ) for a meaningful pullback to materialize . On the downside, the mark of 49700 has proved to be a strong support on multiple occasions which is placed near 52 -week EMA . Going ahead, breakout on the either side of the range(51600 -49700 ) will dictate the further trend .

• In tandem with the benchmark move, Nifty PSU Bank index opened on a flat note and observed a positive bias in the first half of the trading session . However, the selling pressure in second half resulted in index giving up on the initial gains and resulted in a close below the confined range where it consolidated for past four trading sessions (6710-6545). Going ahead, the next support is placed at 6380 which is near 80 % retracement mark of the previous up -move(6163 -7248 ) .

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631