Technical & Derivatives Report
Yesterday, Bank Nifty started with a gap down opening and
then it further slipped to test the levels of 23150. In the
penultimate hours however strong bounce back was seen
which not only recovered the entire loss but ended with strong
gains of 1.63% at 23874.65.
For the last two sessions, the bank nifty had a tepid move
however we maintained the positive stance and mentioned to
use such dips to enter long positions. This strategy worked well
and the way bank index moved during the last couple of hours
it indicates that prices have resumed the last two weeks upward
momentum. For the coming session, we sense the bank nifty to
test 24190 and then towards 24500 levels. On the flip side,
immediate support is placed around 23680 and 23600 levels.
Traders are advised to keep a positive approach and have a
stock specific long approach.
Key Levels
Support 1 – 23680 Resistance 1 – 24190
Support 2 – 23600 Resistance 2 – 24500
Exhibit 1: Nifty Daily Chart
Sensex (40795) / Nifty (11971)
Yesterday, global cues were a bit subdued early in the morning
and despite this, our markets opened lower and then extended
losses as the day progressed. The weakness was mainly led by the
IT counters, that were experiencing heavy profit taking after a
recent relentless run. Then banking joined hands to drag the
markets lower. But all of a sudden at the stroke of the penultimate
hour, markets just took off and financials were the major
charioteer to this late surge. Eventually, Nifty not only recouped
losses but also ended well inside the positive territory.
In last couple of days, markets cooled off a bit after reaching the
12000 mark; but with yesterday’s sharp recovery, 11800 has now
become a sacrosanct support. Nifty precisely attracted buyers in
the support area of 11867 - 11800 and fortunately, we managed
to participate in the sudden up move in the banking space. Now
the way banking index is shaped up, there is a high possibility
that we may see a convincing move beyond 12000 for Nifty
today. As far as levels are concerned, 12050-12100 are the next
levels to watch out for; whereas on the downside, 11900-11800
have become immediate supports.
Exhibit 2: Nifty Bank Daily Chart
Since last few days, we have been continuously mentioning how
broader market is quiet and remained unmoved in the recent
rally. But yesterday, in the last hour surge, midcap index too
participated well and a follow up in the coming session, would
certainly bode well for the bulls.
.Key Levels
Support 1 – 11900 Resistance 1 – 12050
Support 2 – 11800 Resistance2 – 12100