Technical & Derivatives Report
Exhibit 1: Nifty Daily Chart
Following the strong positive momentum seen on Thursday, the
bank nifty witnessed a gap up opening on Friday. However, post
the gap up opening there was no follow-up buying and then after
a gradual decline followed by consolidation in the latter half, the
bank nifty ended flat with marginal gains at 35141.
It was a mixed bag of pictures on Friday as some of the stocks from
this basket performed while some remained lackluster. As
mentioned above, the banking space has been inconsistent in
recent times however we continue to expect a strong
outperformance in the near term. Hence, going ahead, the
approach will remain to have stock-specific trades within this
basket as they are likely to give outperforming opportunities. As
far as levels are concerned, 35800 followed by 36200 is the
immediate resistance whereas support is placed around 35000 -
34600.
Key Levels
Support 1 – 35000 Resistance 1 – 35800
Support 2 – 34600 Resistance 2 – 36200
Exhibit 2: Nifty Bank Daily Chart
Sectorally, one after another different themes are expected to play
out well and it’s better to stick to stock specific approach; because,
the low hanging fruit is already gone and from hereon it would not
be easy at all to do a stock picking. The banking has been a bit
inconsistent of late but we still believe that this heavyweight space
has lot of potential and is likely to drive markets at higher levels.
Despite having highlighted lot of positive factors, we would advise
traders not to get complacent. Hence, it’s better not to get over
leveraged and should follow strict stop losses for existing positions.
Key Levels
Support 1 – 15325 Resistance 1 – 15575
Support 2 – 15300 Resistance 2 – 15600
Sensex (51423) / Nifty (15436)
Last week started on a flat note and as the week progressed, our
markets managed to extend the lead. Since last couple of week, the
global uncertainty was not letting us move higher but the moment
they started cooling off, our market took off and in the process, the
Nifty managed to surpass the psychological sturdy wall of 15000 with
some authority. During the week although there was no major
momentum seen in the index, the undertone was bullish and hence,
slowly and steadily we marched towards record highs. In fact, with
Friday’s extended move, the Nifty went on to post new high on an
intraday as well as closing basis.
Till last week, the entire world was so unsure where markets are
headed and look now; we are at new record highs although the move
was not as swift as it generally should be. Until Thursday, primarily
the banking and IT were the major contributors to the move. But the
sleeping lion RELIANCE finally seems to have awakened as it single-
handedly led markets at new highs on the concluding day of the
week. Now as far as levels are concerned for Nifty, 15600 is the
immediate point and above which there is no major level visible
before the yet another milestone of 16000. But it would be difficult
to gauge whether the extended move from hereon would be similar
(slow and steady) in nature or it would have some faster legs in
between. On the flipside, 15300 – 15150 – 15000 are to be
considered as immediate supports.