Technical & Derivatives Report
The bank nifty aswell started on a positive note and crept higher
during the first half however post the mid-break due to technical
glitch at NSE the bank nifty again started on a positive note and
then witnessed a sharp spurt during the last hour to eventually end
with gains of 3.80% at 36452.
In our last two outlook's we had clearly mentioned that the bank
index is on the support of 20SMA i.e. around 35000 and with
yesterday's upmove the prices have now bounced from the
support to engulf the last two sessions candle. Now the move
today’s session i.e. F&O expiry will be crucial to understand
whether the move was genuine or misleading due to the technical
glitch. For today's session we sense, the bank nifty will have to
remain with its yesterday’s positive structure to resume its recent
uptrend however in case the bank nifty slips below 36000 then one
can say that the correction can continue. On the higher side, 36660
and 37100 will be seen as immediate resistance. Volatility is likely
to increase and hence traders are advised to avoid aggressive bets
and to have a proper exit setup to existing trades.
Support 1 – 36000 Resistance 1 – 36660
Support 2 – 35780 Resistance 2 – 37100
Exhibit 1: Nifty Daily Chart
Sensex (50782) / Nifty (14982)
We had a flat to positive start yesterday and despite global cues were
unfavourable in the morning, our markets managed to extend gains
towards 14800 in the initial hour. However, all of a sudden, the
trading halted on NSE at 11.40 am due to some technical snag. It
was very unusual and things worsened when it lasted for few hours
without any clear intimation on further proceedings. This created
havoc among the traders’ fraternity because everyone was clueless
about their outstanding intraday positions. Fortunately, the trading
resumed around 3.45 pm as an exceptional case for a short period.
Although it almost opened around the same levels, we witnessed a
complete gush in the second half of the truncated session. Before
anyone could realise, Nifty just hastened towards the 15000 mark.
In last twelve months, we have already seen lot of unprecedented
things and yesterday’s session certainly can be added to this tally.
Honestly speaking, yesterday’s late surge has completely surprised
us and has dented our recent cautious stance a bit. Let see how
things pan out in the coming session. If Nifty manages to surpass
15080 – 15220, we may see Nifty resuming its higher degree
uptrend in the following days. On the flipside, a failure to do so will
lead to retesting of 14900 – 14800 levels. We would like to stay
neutral while stepping into the important monthly expiry session and
would focus on further proceedings to gauge the next action.
Exhibit 2: Nifty Bank Daily Chart
Undoubtedly, the banking had a short but sweet session yesterday
as we saw BANKNIFTY just exploding in few minutes. Hence, the next
path of action for our benchmark would be decided by its movement
only. Almost all other pockets were muted while we were seeing a
sharp surge in the financial space. Let’s see what market has to offer
on the monthly expiry day.
Support 1 – 14900 Resistance 1 – 15080
Support 2 – 14800 Resistance2 – 15220