Technical & Derivatives Report
Nifty Bank Outlook - (24524)
On Friday, the bank index started on a flat note however it
witnessed a spectacular intraday rally to end with gains of around
4% and whooping 10% gains agains the previous week close.
After a severe underperformance for the last few weeks, the bank
nifty finally joined the bulls party and single handedly pushed
Nifty towards 11700 mark. During the week, the bank index broke
one by one key resistance with ease and the momentum is
strongly gripped by bulls. Going ahead the bias remains positive
and traders are advised to focus on stock specific approach within
the sector which are providing outperforming opportunities. As far
as levels are concerned, 24850 followed by 200SMA at 25000 can
be taken as immediate resistance whereas 24200 and 24000 are
the immediate support levels.
Key Levels
Support 1 – 24200 Resistance 1 – 24850
Support 2 – 24000 Resistance 2 – 25000
Exhibit 1: Nifty Daily Chart
Sensex (39467) / Nifty (11648)
The expiry session was quite boring for our benchmark; but our
markets started with a bang on Friday above the 11600 mark, owing
to extremely positive cues from the Dow futures early morning. In
first couple of hours, the Nifty hastened towards the 11700 mark;
but cooled off a bit in the latter half to conclude tad below 11650.
The ongoing rally across the globe is just extraordinary and we are
not at all falling behind. Although we are not actively participating
in index specific trades since last a week (After 11350-11400) or so,
the focus remained on individual stocks. Yes but at the same time,
we are advocating booking timely profits on trades as well and we
would continue to do so. After a certain time, it’s always better to let
go some move and focus on money management. As far as levels
are concerned, 11700-11750 remains to be an immediate hurdle;
whereas on the flipside, 11600 followed by 11540 would be seen as
key support levels. It may sound a bit repetitive but since we have
approached yet another cluster of resistances, we continue to advise
some caution at higher levels, rather better to take one step at a
time and keep a close eye on key levels.
.Key Levels
Support 1 – 11600 Resistance 1 – 11700
Support 2 – 11540 Resistance 2 – 11750
Exhibit 2: Nifty Bank Daily Chart
Since last few days, the banking space started to outperform and
single handedly, the up move was propelled by the banking stocks.
In fact, the Bank Nifty witnessed a stellar intraday move on Friday
and thereby marking whopping 10% gains during the week. Apart
from this, there was a decent stock specific action throughout the
day, but the broader market slightly took a back sit.