Once again bank nifty started on a flat note and slipped to mark
intraday low of 21128. Subsequently, the bank index witnessed a
sharp bounce from lower levels to eventually end near the
opening levels with marginal gains of 0.19% at 21451.80.
Technically not much has changed and the formation of Dragon
Fly Doji indicates that the traders are baffled with the immediate
trend. Although we have been cautious with the recent bounce for
the last few days we are not seeing selling pressure in the broader
markets as expected hence the next few sessions will be crucial
how the key driver of market (bank nifty) pan out. Immediate
resistance is placed around 21820 and 22000 levels whereas the
selling pressure may resume if prices sustain below 21100 levels.
Ahead of extended weekend it would be better to keep positions
Support 1 – 21100 Resistance 1 – 21820
Support 2 – 21000 Resistance 2 – 22000
Exhibit 1: Nifty Daily Chart
Sensex (38068) / Nifty (11248)
Yesterday early morning, Dow future was extremely volatile as it was
reacting to the debate conducted between the US presidential
candidates. Initially it was firm but post the conclusion of the same,
Dow future just nosedived and despite this, our markets opened
slightly in the green. During the remaining part, we witnessed some
volatile swings in a band of 100 points to end marginally in the
The kind of price action we witnessed yesterday, was clearly a
nightmare for momentum traders. Because the moment one decides
where market is going, it just reverses and moves in opposite
direction. This scenario was repeated more than a couple of times
and hence, it turned out to be an extremely difficult day for traders.
Basically, Nifty was trapped in a range of 11200-11300 and it
appeared as if the options writers had the edge yesterday one day
ahead of the weekly expiry. As per our recent directional view, we still
see 11300-11350 as a sturdy wall and till the time it's not crossed
convincingly, we may see some profit booking at higher levels.
However, on the lower side, if any weakness has to trigger, the Nifty
needs to break below 11180-11150.
Support 1 – 11180 Resistance 1 – 11300
Support 2 – 11150 Resistance2 – 11350
Exhibit 2: Nifty Bank Daily Chart
Let us see which way market is willing to go as we step into the
October month. Yesterday, the banking index was the first one to
drag benchmark lower but a smart recovery in the latter half was
encouraging. So, banking as always plays a vital role and the next
path of action is very much depended on its movement going
forward. Although, we have been a bit cautious since few days, after
the recovery from last week's low, market are not willing to fall. So
next 2-3 sessions would be quite crucial and accordingly, we shall
reassess the situation.