Technical & Derivatives Report
Exhibit 1: Nifty Daily Chart
The new trading week started on a pleasant note as there was
some positivity seen across the globe. With this, our benchmark
registered a fresh record high but the banking space remained
muted from the opening tick itself. Although BANKNIFTY ended
the session with nominal gains, the momentum was missing in
banking counters.
Throughout the day, BANKNIFTY vacillated in a range of merely
120 – 150 points which is very unusual for such high beta traders’
favourite index. The Nifty is well above its previous highs and
banking index is still nearly 7% away from it, which is a clear sign
underperformance. Practically, it has lot of room if it starts
catching up with the benchmark; but if that has to happen, the
financial space will need some solid trigger which will propel it to
new highs. Till then expect this underperformance to continue.
For the coming session, 35600 – 35800 are to be seen as
immediate hurdles and only a sustainable move beyond this
would result in some trended move. On the flipside, 35100 is to
be considered a key support.
Key Levels
Support 1 – 35100 Resistance 1 – 35600
Support 2 – 35000 Resistance 2 – 35800
Exhibit 2: Nifty Bank Daily Chart
The market breadth continues to be robust which is a clear
indication that stock specific moves are providing good trading
opportunities for short term traders. Hence, one should continue to
trade with a stock specific approach and keep a tab on the above
mentioned levels on the index.
Key Levels
Support 1 – 15675 Resistance 1 – 15800
Support 2 – 15600 Resistance 2 – 16000
Sensex (52329) / Nifty (15752)
Nifty started the week on a positive note and continued its exercise
of making new records and marked a high of 15773 yesterday. The
trading range for the day was not much large and the index posted
gains of about half a percent and ended around 15750.
The uptrend continues for the Nifty as it inched higher to mark new
records everyday. However, with the momentum missing from the
banking space, the pace of upmove has slowed down a bit. Also,
Nifty is trading at some important levels where 15770-15800 is the
resistance zone. When prices are trading at all-time high, the
retracement levels usually work well in projecting the probable
targets/resistances in uncharted territory. Now, if we draw some
retracements on the recent corrective move of Nifty, then 127%
retracement of the correction from 15431 (Feb. 2021 high) to
14151 (April. 2021 low) comes in the range of 15770-15800. Hence,
it would be crucial to see how the index behaves around this range.
As of now, the market breadth continues to remain positive and
hence, there are no signs of reversal. On the flip side, the index has
been respecting the ‘20 EMA’ on the hourly chart on intraday dips
which is now placed around 15675. Thus, the above analysis
indicates resistance for Nifty in the range of 15770-15800 and
support around 15675 followed by 15600. A move above 15800
would then lead to a continuation of the trend towards the