Technical & Derivatives Report
Exhibit 1: Nifty Daily Chart
Although the global market were not so encouraging, we managed
to start-off with an upside gap but within a blink of eye sneaked
below 32350. However, this dip got bought into in next couple of
minutes and we saw a sharp recovery towards 33000 mark. In the
midst, the BankNifty witnessed another round of selling to towards
32400 and then eventually concluded the choppy day with a cut of
half a percent to its previous day close.
As we already highlighted, the BankNifty is now placed around very
crucial levels (around 89 EMA in daily chart which recently acted as
demand zone) and follow up move from hereon shall dictated the
near term directional move. Hence, traders should keep a close tab
especially on the banking index as any upmove in broader market
without the support of BankNifty wouldn’t be sustainable. As far as
levels are concerned, 32300 is a key level to watch out now and
breach of this may open doors for sub-31000 levels; whereas, on
the higher side 33000-33200 shall be the immediate supply zone.
Key Levels
Support 1 – 32300 Resistance 1 – 33000
Support 2 – 32000 Resistance 2 – 33200
Sensex (49201) / Nifty (14683)
Yesterday morning, the global set up looked a bit sluggish and
despite this, our benchmark managed to kick off the session with an
upside gap. However, these gains were merely a formality, as we
witnessed key indices paring down all gains to enter a negative
territory in the initial trades. This was followed by a smart recovery
in the subsequent hour after entering a sub-14600 territory. This
process got repeated as we witnessed swings on both sides
throughout the remaining part of the session. Eventually, with the
help of last hour gradual recovery, Nifty managed to secure three
tenths of a percent gains.
It was clearly a choppy session for indices but the real action was
seen in individual pockets. The entire ‘Pharma’ space kept buzzing
throughout the session along with the broader end of the spectrum.
So it seems, key indices have opted for some breather before
deciding the next path of action. As we mentioned in the previous
commentary, the banking plays a vital role here as it has reached a
crucial support base and should now be considered a ‘Make or Break’
zone in the near term. If the Nifty has to see some recovery form
heron, the banking counters need to regain strength. If they fail to
do so, we may see further weakness in days to come.
Exhibit 2: Nifty Bank Daily Chart
As far as levels are concerned, 14750 followed by 14780 are to be
seen as immediate hurdles; whereas on the flipside, 14550 – 14440
remains an intraday support zone. Since individual stocks are
performing well and providing better opportunities, it’s better to
stick to stock centric approach till the time indices confirm their near
term direction.
Key Levels
Support 1 – 14550 Resistance 1 – 14750
Support 2 – 14440 Resistance2 – 14780