Technical & Derivatives Report
Exhibit 1: Nifty Daily Chart
Post Wednesday’s outperformance, the BankNifty began
yesterday’s session on a positive note and gain some strength in
the initial half an hour of trade to surpass 33300 mark. However,
these gains were short lived as we saw decent selling pressure at
the higher levels which pulled index towards sub-33000 levels. In
the midst, one more attempt of pullback was seen which got sold
into in the final hour. Eventually, we concluded the weekly expiry
day tad below 32800 with the loss of 0.63%. In our previous couple
of articles, we have been mentioning that if Nifty has to gain further
strength BankNifty should also participate. Seeing Wednesday’s
outperformance from banking space, things looked quite
optimistic but we weren’t sure and hence opted to wait for follow-
up buying. Despite decent opening, the follow-up buying was
really missing yesterday and every attempt of recovery got failed.
Considering yesterday’s development, we are still uncertain about
the trend reversal in BankNifty and hence, would maintain our
cautious stance on same. Traders are advised to stay light
particularly in this space now and should rather focus on other
individual names that are really doing great. For the coming
session, 33300-33500 remains a study hurdle; whereas, 32300-
32000 are the immediate support zone.
Key Levels
Support 1 – 32300 Resistance 1 – 33300
Support 2 – 32000 Resistance 2 – 33500
Sensex (49746) / Nifty (14874)
We had a gap up opening yesterday owing to favourable cues from
the global peers. Since we kick-started the session beyond the recent
hurdle of 14900, the lead extended in the following hours. Things
were looking extremely rosy for the major part of the session and lot
of individual themes did extremely well. But all of a sudden at the
stroke of the penultimate hour, the Nifty nosedived towards 14800
before anyone could realise. Fortunately, the fall restricted around
the psychological mark and we had a modest recovery in last few
minutes of trade to regain the positive terrain at the close.
Since last twelve trading sessions, we were unable to go beyond the
sturdy wall of 14900. Yesterday, at the opening we managed to
conquer it and for the major part of the day, we maintained a good
positive posture to extend gains at the mid-session. However, we
were a bit sceptical of this up move during the day and did not get
carried away by this. This strategy played out well as we witnessed a
sudden correction in the last hour to refuse the daily close above
14900. For the coming session. 14900 – 15000 remains to be a key
resistance zone and till the time we do not confirm a convincing
close above it, we would avoid aggressive bets on the long side,
especially in sensitive names. On the downside, 14800 followed by
14750 would be seen as immediate supports.
Exhibit 2: Nifty Bank Daily Chart
Traders are advised to keep a close tab on above mentioned levels
and should continue with a stock centric approach; because still
there are bunch of interesting themes that are doing exceedingly
well in the market.
Key Levels
Support 1 – 14800 Resistance 1 – 14950
Support 2 – 14750 Resistance2 – 15000