Technical & Derivatives Report
Yesterday, Bank Nifty started on a flat note however the positive
momentum from the previous session pushed the bank index towards
the 35800 levels. Subsequently, in the last hour, some profit booking
was seen to eventually end with gains of a percent at 35579.
After a very long time, we have seen a clear outperformance by the
banking space and even though the benchmark ended with minor loss
the bank index ended with handsome gains. Now with yesterday's
move, we are witnessing a trendline breakout however with the fag
end profit-booking it just missed to cross above the June swing high
of 35810. Next few sessions will be crucial as if the trend line break out
holds, and if we manage to break above the mentioned swing high,
the banking space can single-handedly push the benchmark index
above the 16000 levels. In such a scenario, traders are advised to focus
on a stock-specific approach within the basket. As far as levels are
concerned, immediate resistance is at 35810 - 36000 whereas support
is at 35160 and 35000 levels.
Support 1 – 35160 Resistance 1 – 35810
Support 2 – 35000 Resistance 2 – 36000
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Sensex (52861) / Nifty (15818)
Our markets started the day on a flat note as there was no major trigger
from the global peers. Subsequently, the buying momentum accelerated
in some of the financial stocks, which pushed the index higher towards
the record high. There were couple of attempts made post the mid-
session to register a new high; but this again failed as we saw a complete
nosedive at the stroke of the penultimate hour. This sudden profit
booking pared down all gains to conclude the session with nominal loss.
Yesterday, the kind of lead our markets took in the first half (courtesy to
heavyweight financial stocks), the set up was ideal to post a new high.
Nobody knows why market suddenly becomes so nervous when it enters
the 15900 zone. In the process, the daily candle of Nifty forms a small
body which is a sign of uncertainty. But fortunately the heavyweight
banking space still holds its positive posture and this certainly bodes well
for the bulls. Going ahead, this basket remains to be a decider and we
reiterate if Nifty has to reach the millstone of 16000, we need to have
follow up buying in banking constituents.
As far as levels are concerned for Nifty, 15750 – 15700 is to be seen as a
key support zone and on the higher side, 15900 remains a sturdy wall.
Since last few days, individual themes have again started to perform well
and hence, traders are advised to stick to stock centric approach; but at
the same time, avoid being complacent.
Support 1 – 15750 Resistance 1 – 15915
Support 2 – 15700 Resistance 2 – 16000