Technical & Derivatives Report
Bank Nifty as well started on a flat note and after an initial decline
witnessed positive momentum throughout the session to
eventually end with gains of 0.88% at 23084.
In our yesterday's outlook, we had mentioned a breakout level for
bank nifty at 23100 and it has now closed tad below the same.
The bank nifty has started showing outperformance in the last few
sessions and as mentioned above a further rally in the bank index
can open doors for a strong upmove in the broader markets. For
the coming session, 23220 will be the level to watch and sustained
trade above the same can push the bank index towards 23470 -
23600 levels. On the flip side, immediate support is placed around
22850 and 22730 levels. Traders are advised to focus on stocks
within this basket as they are likely to give outperforming
Support 1 – 22850 Resistance 1 – 23220
Support 2 – 22730 Resistance 2 – 23470
Exhibit 1: Nifty Daily Chart
Sensex (38140) / Nifty (11215)
Yesterday, our markets kick-started the day on a flat note in line with
muted global cues. In the initial trade, we witnessed a small decline
towards 11100, which got bought into. Since it was considered a
strong support for weekly expiry, the buying accelerated in the
following hours. In fact, during the remaining part of the day, we
witnessed higher highs higher lows to confirm a close beyond the
Clearly, there has been no stopping for the recent Bull Run and one
after another, markets are convincingly surpassing all major hurdles.
As per the technical observations, Nifty at present is placed at the
78.6% retracement of the entire fall started after the outbreak of
coronavirus pandemic and hence, it is considered to be a
respectable resistance. Here, all eyes should be on banking space
now as it is likely to play a vital role for the overall direction for next
few days. The way Bank Nifty is shaped up, any further rally in it
would unfold a strong up move in the broader markets as well.
Hence more than Nifty, we would be keeping a close track on the
banking index now. As far as levels for Nifty is concerned, a
sustainable move beyond 11225 would result in an extension
towards 11300-11350 and on the flipside, 11150 followed by
11100 remains to be an immediate support zone.
Exhibit 2: Nifty Bank Daily Chart
Traders are advised to keep following stock centric moves and
ideally should keep booking timely profits wherever it's necessary.
The stop loss level in Nifty should move higher towards 11050,
which can be seen as a key support.
Support 1 – 11150 Resistance 1 – 11300
Support 2 – 11100 Resistance 2 – 11350