Technical & Derivatives Report
Nifty Bank Outlook - (20956)
In yesterday's session, the Bank Nifty index started trading for the
session on a flat note. The index took support near the 20000
mark and saw a gradual pullback move till noon. However, in the
last couple of hours of the trade, the index rallied sharply and
continued the momentum till the end to close tad below the
21000 mark.
The Bank Nifty rallied by almost 1000 points from its day's low led
by the index heavyweights such as HDFC Bank, Kotak Bank, SBI
and ICICI Bank. As mentioned in our earlier report, the '200 SMA'
support on the hourly chart has played its role well and now the
momentum has resumed in the index. The index seem to have
started the next leg of upmove post the retracement and hence,
traders are advised to continue to trade with a positive bias. The
immediate supports for the index are now placed around 20600
followed by 20000 whereas intraday resistance is seen around
21670.
Key Levels
Support 1 – 20600 Resistance 1 – 21500
Support 2 – 20000 Resistance 2 – 21670
Exhibit 1: Nifty Daily Chart
Sensex (34208) / Nifty (10092)
Our markets were undergoing some stressful atmosphere ever
since the news came out of the scuffle at the India-China border
on Tuesday. Hence, we could see our markets struggling at higher
levels and were trading around the lower end of the consolidation
range. Yesterday morning, it was surprising to see that we started
on a flat note despite Global markets were trading strongly in red
and SGX Nifty too indicated a gap down opening below 9800.
Throughout the day, we maintained our positive posture and with
the help of strong surge in the latter half, the Nifty managed to
clock handsome gains over two percent.
If we refer to our yesterday’s commentary, despite we were
struggling, we remained hopeful and expected markets to make a
move in the upward direction. To add to our conviction, we
needed a strong close beyond 10000-10050 levels, which got
confirmed in the last hour surge. Since yesterday’s move was a
broad based one and is mainly driven by the financial stocks, we
consider this a healthy up move. Hence, we continue to remain
sanguine and expect the rally to extend towards 10150-10200
levels in today’s session.
Exhibit 2: Nifty Bank Daily Chart
On the flipside, 10050 followed by 10000 would now provide
decent support. Traders are advised to focus on individual stocks
especially from the broader market, who are providing better
trading opportunities.
Key Levels
Support 1 – 10050 Resistance 1 – 10150
Support 2 – 10000 Resistance 2 – 10200