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Nifty : 21885

Technical Outlook

Day that was…

Equity benchmarks plunged 1380 points or ~6% tracking General Election outcome. Nifty settled the Tuesday’s session at 21885. Broader market bore the brunt of market sell-off, consequently Midcap and small cap index drifted ~8% each. Sectorally, barring FMCG, all other indices ended in red weighed by financials, metal, Oil & Gas

Technical Outlook

* The index started the session on a negative note and inched southward as the election outcome unfolded. The downward momentum accelerated on the breach of key support of 22400. As a result, daily price action formed a sizable bear candle that engulfed past four months trading range, indicating corrective bias. The India VIX recorded 52 weeks high of 31 as anxiety escalated around General Election outcome

* Contrary to our expectation, Nifty breached the key support of 22400 and settled the session below 22000 mark. Going ahead, we expect volatility would remain elevated as investors would asses the final outcome of General Election. The bias would remain negative wherein strong support is placed at 20800. Meanwhile, on the upside 22400 would now act as immediate hurdle as it is confluence of:

* A) as per change of polarity concept earlier resistance of 22400 would now act as resistance

* B) 61.8% retracement of current decline 23338-21281

* Structurally, we believe strong support is poised at 20800 as it is confluence of:

* A)61.8% retracement of current up move (22417-23338)

*  B) As per change of polarity concept earlier breakout of 22800 would now act as key support

Nifty Bank: 46928

Technical Outlook

Day that was:

Indian equities witnessed sharp sell off on Tuesday after General election results came in below exit poll projections . Nifty Bank index declined 4051 points or 8 % to close at 46928

Technical Outlook

* The Bank Nifty index started session with a gap down and then went on to decline through out the session amid high volatility on Tuesday . Index declined 9 . 9 % from Mondays’ life high of 51133 before recovering 1000 points from vicinity of 200 -day ema . In the process index declined below immediate support of 48600 contrary to expectations . Price action thus formed a large bear candle indicating knee jerk reaction from life highs that retraced preceding three week gains in single session indicating reversal of upward momentum

* In the short term, market would assess the political stability over next few sessions and could remain volatile wherein key hurdle remains at 48600 levels

* On the down side, follow through below Tuesday low would indicate extended decline towards 45200 levels as it is confluence of : - rising 52 -week ema at 45177 - Since 2022 June, index has under gone maximum correction of 12 % . From current high of 51133 , such magnitude is at 45500

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