Technical & Derivatives Repo
Exhibit 1: Nifty Daily Chart
We started-off the session slightly lower; but smart buying
emerged from the word go. As we progressed, index gained
strength and slowly inched higher to first surpass Friday’s high
of 35436.65 and then follow up buying led closing almost at
the peak with the gains of more than a percent.
Last week, the BankNifty struggled to surpass 35250 multiple
time and finally, could managed to breach same on Friday.
However, the index lacked momentum hence concluded the
day tad below 35200. Post recent underperformance, yesterday
we witnessed decent buying index to boost the overall
sentiments. At current juncture, 34400-34500 shall act as a
strong demand zone; whereas, immediate resistance is now
placed around 36400-36500. Considering the overall chart
structure, we maintain our bullish stance on market and would
advise traders’ adopting buying on dips strategy.
Support 1 – 35000 Resistance 1 – 36000
Support 2 – 34500 Resistance 2 – 36400
Exhibit 2: Nifty Bank Daily Chart
We advise traders to trade with a positive bias and one should
continue with the recent stock specific approach. It might sound
a bit repetitive but it’s our duty to keep reminding that traders
should not get complacent and follow a proper risk management
now; because the low hanging fruit is already gone and in
between we may see few bouts of profit taking which may look
surprising if positions are overleveraged.
Support 1 – 15430 Resistance 1 – 15700
Support 2 – 15375 Resistance 2 – 15780
We had a flat start to the week yesterday morning and in fact, in
the initial trade, there was some mild negativity seen in the
market. But similar to the recent trend, market absorbed the
pressure and then resumed its upward momentum, once again
led by the giant RELIANCE. As the day progressed, the buying
momentum continued to first reach the new milestone of 15500
and in the final hour 15600 became the reality as well. Eventually,
the Nifty ended the session with nearly a percent gains.
Undoubtedly the trend has been extremely strong since last few
days and hence, the Nifty reached yet another millstone of 15600
before anyone could realise it. Since we are in an uncharted
territory, there is no historic level to consider as a next resistance
but taking few Fibonacci ratios into consideration, there is no
major level visible before the magical figure of 16000. So
practically, every 100 points move from hereon should be
considered an intraday level in the northward direction. On the
flipside, the support levels are very much defined which are now
to be seen at 15400 – 15250.