Sensex- Nifty Market Outlook

Sensex (26591) / Nifty (8061) 

Yesterday, our benchmark index opened slightly higher in-line with cheerful global bourses. However, the bulls failed to keep the momentum going as we witnessed a gradual slide within a narrow range to close tad above the 8050 mark. Monday’s recovery in the latter half led to a formation of ‘Dragonfly Doji’ pattern on the daily chart. As a result, the index started the session on a positive note however, the follow up buying was clearly missing. Despite this, we maintain our opinion that the index may still give a minor bounce back towards 8120 – 8180. Since, this can be termed as a pullback of the recent fall; we would advise not to trade aggressively on the long side. On the flipside, a sustainable move below 7950 may trigger pessimism in the market, which may result in a continuation of this downward move towards 7850 – 7800 levels. At this juncture, for next few days, we expect a range bound action within 200 points before confirming next direction of the market. Traders can focus on stock specific moves by following proper exit strategy.

Bank Nifty Outlook - (17326)

In yesterday's trading session,the Bank Nifty index traded in a narrow range and ended the session on a flat note. During last week, the index gave a breakdown from a rising trend line support with a gap down opening. As per the gap theory in technical analysis, the breakaway gap created last week should

now act as a resistance on pullback moves. The gap area seen last week is in a range of 17682 - 17738 and hence, we may see a pull back move towards the mentioned resistance zone in near term. Going forward, the intraday resistance for the index is placed at 17565 and 17682 levels. On the flip side, the immediate support in the index is placed around 17260 and 17170 levels.

Nifty :Key Levels
Support 1 – 7995 Resistance 1 – 8120
Support 2 – 7950 Resistance 2 – 8180

Bank Nifty:Key Levels
Support 1 – 17260 Resistance 1 – 17565
Support 2 – 17170 Resistance 2 – 17682