Technical & Derivatives Report
Most of the Asian markets were trading with a positive bias in
morning and in line with the global cues, our market started the
week on a positive note. Right from the word go, the index
witnessed a buying momentum and with participation from the
broader markets, Nifty crept higher throughout the session to end
with gains of over 150 points.
Recently, we have seen a consolidation phase in the Nifty index
wherein the index had traded within the range of 11800-12050
in this calendar month. However, although the index was
consolidating, there was sector rotation seen as the certain
pockets witnessed buying momentum in this consolidation.
Hence, we kept our view positive on the index and interpreted this
consolidation as a time-wise correction within and uptrend. In
yesterday’s session, broader markets witnessed positive
momentum throughout the day and as a result, the index
resumed its uptrend and is now few points away from its all-time
high. The time-wise correction now seems to be over and hence,
we expect the momentum to accelerate from hereon to take the
indices to the unchartered territory. Infact, we will not be surprised
if the markets show a gap up opening to register new highs and
then continue its northward trajectory. The immediate target
areas once the Nifty reaches new highs will be around 12180
followed by 12290, whereas the immediate supports will now be
seen in 12000-11950 range.
Exhibit 1: Nifty Daily Chart
Bank Nifty Index witnessed a lower opening for the week however
it defended the previous session low and moved higher
throughout the session to cross above its recent high. Bank Nifty
Index eventually ended with gains of around 1.43% at 31556.
For the last few weeks, Bank Nifty has outperformed as compared
to benchmark index Nifty and in yesterday's session, it was an all-
round performance with private as well as PSU banks
participating. We expect this positive momentum to continue and
the banking index to test its all-time high of 31783 and extend
further in the very near term. Traders are hence advised to keep
positive bias and avoid contrarian bets. As far as support levels
are concerned, 31350 followed by 31050 are the immediate
Support 1 – 31350 Resistance 1 – 31783
Support 2 – 31050 Resistance 2 – 32000
Exhibit 2: Nifty Bank Daily Chart
Amongst sectorial indices, all the indices except Nifty Media
ended in the green with the metal space outperforming the most.
The Banking and the Pharma space too seems will be continuing
its upmove and hence, traders are advised to trade with a
positive bias and look for opportunities which could deliver good
returns in near term.
Support 1 – 12000 Resistance 1 – 12103
Support 2 – 11950 Resistance 2 – 12180