Technical & Derivatives Report
Sensex (30690) / Nifty (8994)
Post a long weekend, our markets started trading for the week
on a flat note. However, the indices corrected post opening and
then oscillated within the range of 200 points and ended the
session tad below the 9000 mark.
On Monday, while the Nifty oscillated within a range 8900-9100,
it was a day with more of stocks specific action. Stocks from the
Pharma sector continued with their up move and outperformed
the broader markets. Stocks from cement space too witnessed
positive momentum and posted decent outperformance. On the
other hand, the Banking and Financial sector continued with its
underperformance due to which, Bank Nifty corrected by more
than 2 percent. The immediate support for Nifty is placed around
8900 and on Monday, the Nifty witnessed pullback move from
this support couple of times. For the near term, 8900 followed
by 8650 are the immediate supports for the index. Till the index
holds the mentioned supports, we expect the pullback move
seen during the last week to continue. The immediate resistance
is seen around 9130 and once Nifty surpass this level, we expect
the index to rally towards 9320 first (38.2 percent retracement of
the recent correction) followed by 9500.
The banking index too started the week slightly lower along with
the benchmark index. Despite a valiant effort at midst of the day,
the BANKNIFTY remained under pressure for the major part of
the session to eventually close with over couple of percent cut.
Last week has been a remarkable one for the banking index but
overall it has been slightly underperforming the broader market.
This behaviour continued on Monday as well as some of the
heavyweight private banking stocks saw decent profit booking.
Going ahead, we continue to see good support around 19200-
19000 and till the time it remains convincingly above this
support, the possibility of marching towards 19900-20200
cannot be rules out. Before this, 19600-19800 can be seen as
Support 1 – 19200 Resistance 1 – 19800
Support 2 – 19000 Resistance 2 – 20200
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Traders should adopt a stock specific strategy in such market and
identify stocks in momentum on a given day. It is also advisable
to stringently follow the risk management strategy and book
profits on positions with decent gains as well.
Support 1 – 8900 Resistance 1 – 9130
Support 2 – 8650 Resistance 2 – 9320