Technical & Derivatives Report
Nifty Bank Outlook - (20202)
The Bank NIfty index opened marginally negative in yesterday's
session and then oscillated within a range throughout the day to
end around 20200 with loss of about half a percent.
It was a day of consolidation and hence nothing much changed
on the charts with respect to the short term trend. As mentioned
earlier, the support for Bank NIfty is placed around 19500, its 200
SMA on the hourly charts. On the flipside, the
immediate resistance is around 20600-20750 and a move above
the same could then lead to an upmove. Within this range, traders
should look to trade with a stock specific approach.
Key Levels
Support 1 – 19700 Resistance 1 – 20600
Support 2 – 19500 Resistance 2 – 20750
Exhibit 1: Nifty Daily Chart
Sensex (33508) / Nifty (9881)
After Tuesday’s wild swings, our markets started slightly lower on
the back of sluggish negative cues. However, the initial decline
was immediately bought into and thereafter index slipped into a
consolidation mode. In the midst of this, index slowly and
gradually moved towards the 10000 mark. However, once again
we failed to sustain at higher levels and saw a decent dip in last
one hour of trade to conclude with nominal cut.
The entire world is already fighting with the pandemic since last
few months and we are obviously not spared with it. Somehow
market already seems to have discounted it and has seen some
smart recovery in last couple of months. But now, tensions at the
India-China border is keeping our market on it’s toes. This is
clearly getting reflected in prices, the way market is behaving since
last couple of days. Technically speaking, Nifty is struggling to
surpass the sturdy wall at 10000 and at the same time, 9800-9700
has become a key support zone. Any negative development on
the domestic as well as global front, will lead to a breakdown
below these levels. However until then, there is still a ray of hope
and a move beyond 10000 would strengthen the upside rally. Let
see how things pan out over the next few days.
Although we are still a bit hopeful, we advise traders to stay light
in the range of 10000-9700. A breakout in either direction would
trigger a trended move and accordingly one should then be
prepared with the next plan of action.
Key Levels
Support 1 – 9800 Resistance 1 – 10020
Support 2 – 9700 Resistance 2 – 10050
Exhibit 2: Nifty Bank Daily Chart