By Sameet Chavan
After last week’s tail finish correction, we began the week on a positive note on Monday on the back of intelligent recovery seen in the international peers. We witnessed couple of hiccups on the very same day post the gap up opening as traders chose to unwind a couple of longs due to uncertainty more than the close to-term trend. Fortunately, there was no additional aberration seen across the globe. In reality, in the following session, we witnessed a decent bump up at the opening on the back of favourable international cues. Thereafter, we witnessed a gradual move to mark a fresh higher of 16712.45.
In the last couple of sessions, the market place consolidated in a slender variety and looked a bit tentative about 16700. The banking index also as soon as once more disappointed just after displaying some promising indicators about mid-week.
If we look at the vis-à-vis returns in Nifty as compared to the earlier series, the Nifty added more than 5% to the bulls’ kitty but when we dig into it, we will realise, only a couple of handful heavyweight stocks lifted the benchmark greater. The broader market place kept sulking and some of the counters from the F&O space as nicely went by way of some decent hammering. So while Nifty came out of its 2-month congestion this series, it was clearly a disappointing one for the traders’ fraternity.
Now as we step into the new series, all eyes would be on the banking space. The whole rally of Nifty from 16000 to 16700 has come with no the participation of this heavyweight basket. If Bank Nifty has to get any type of strength, it desires to surpass the sturdy wall of 36300 convincingly. If this takes place then anticipate Nifty heading towards 16800 – 17000. Since we are at such elevated levels, we need to have to have an understanding of the other side also. Bank Nifty is in a variety and any breakdown in the downward path under 34500 would trigger the a lot-awaited correction in the benchmark index.
(Sameet Chavan is Chief Analyst – Technical and Derivatives, Angel Broking. Views expressed are the author’s personal.)