Technical & Derivatives Report
Despite no major clues for global market, the BankNifty managed
to start the weekly expiry day on a cheerful note. Post some hiccups
in the early morning trade, the index regained strength to surpass
the much awaited levels of 35800 with an ease. In fact, the banking
index almost touched the psychological level of 36000 and then
consolidated a the higher levels for the remaining part of the day.
Eventually, we concluded the day with the gains of 0.67% tad above
35900.
Since June series, the banking index made couple of attempts to
breach 35810 levels but failed. Finally, yesterday we not only
outshined this level but also managed to close above same. For the
forthcoming session, all eyes would be on the magical figure of
36000 mark; as any uptick beyond this we propel the next leg of
rally towards the life time highs. For traders, yesterday’s strategy of
buying ATM call when the BankNifty surpasses 35800 played well
and similarly for today any move beyond 36000 shall be an
opportunity to buy slightly Out-the-money call strikes.
Key Levels
Support 1 – 35800 Resistance 1 – 36000
Support 2 – 35500 Resistance 2 – 36250
Exhibit 1: Nifty Daily Chart
Exhibit 2: Nifty Bank Daily Chart
Sensex (53159) / Nifty (15924)
The day started slightly higher despite mixed global cues. In the initial
trades, market had some tentativeness which resulted in a small
downtick. However this didn’t last too long as the buyers latched on
to this opportunity to not only reclaim the positive territory but also
went on to surpass the sturdy wall of 15910 with some authority.
There was no bigger extended move after this but Nifty managed to
close at record highs by adding nearly half a percent to the bulls’ kitty.
There were several attempts made in last month or so to go pass the
level of 15910; but every time markets were struggling to do this.
Yesterday, finally this level is breached and that too on a closing basis,
bodes well for the bulls. Although the stellar move in IT basket
initiated the up move in last couple of days, the real push from the
financial space was needed to surpass the sturdy wall. In line with this,
the BANKNIFTY managed to traverse 35810, which led to a breakout
beyond 15910 for Nifty. The way we closed yesterday, 16000 is
merely a formality now. If there is no aberration on the global front,
we are likely to continue this optimism. So let’s keep our fingers
crossed and hope to reach the milestone in the forthcoming session
only.
As far as supports are concerned, 15900 followed by 15850 are to
be seen as immediate levels. For the coming session, keep your eyes
on the psychological level of 36000 for BANKNIFTY. The moment we
stay beyond it, banking could easily start leading from the front.
Key Levels
Support 1 – 15900 Resistance 1 – 16000
Support 2 – 15850 Resistance 2 – 16080