sensex-nifty market outlook

Market Cues :

Indian markets are expected to open in green tracking SGX Nifty & Asian peers. U.S. stocks ended Thursday’s session modestly lower for second consecutive day, as investors turned cautious ahead of an important employment report due on Friday. Key indexes swung between small gains and losses before ending the day slightly lower, as investors were weighing a possible rate hike in December, 2015. Notably, Energy, Utilities and Materials were the biggest decliners. European stock ended the day in red, as the pound dropped after Bank of England gave a downcast outlook for the British economy, saying that weakness in emerging markets will drag on the growth and inflation prospects. Poor quarterly earnings led to correction across the Wm. Morrison Supermarkets and Randgold Resources stocks on Thursday. Indian markets ended the day in red for second consecutive trading session. With outcome of Bihar Exit polls later in the evening, investors turned cautious. Key indices witnessed correction in the afternoon trade and they closed 1% lower.

Sensex (26304) / Nifty (7955)

We had a soft opening yesterday mainly on the back of mixed global cues. Subsequently, the benchmark index kept on falling throughout the session to close with a percent cut. Quite surprisingly to most of the traders (including us), we witnessed extremely weak session and as a result, the Nifty eventually slipped below the 8000 mark for the first time in last four weeks. Cosidering yesterday's session, it seems that the bulls are opting to stay out of the market just ahead of Bihar election result. Technically speaking, the Nifty has now broken down marginally from its lower end of the Channel. Going forward, if the index manages to stay below 7920 then we may witness an immediate correction towards 7850 - 7800 levels. On the higher side, 8020 – 8060 are likely to act as a strong resistance. It's advisable to stay light on positions as the election outcome on Monday may bring in higher volatility in our market.

Key Levels
Support 1 – 7920 Resistance 1 – 8020
Support 2 – 7850 Resistance 2 – 8060

 Bank Nifty Outlook - (16995)

In yesterday's trading session, the Bank Nifty index witnessed another gap down opening and continued its negative momentum throughout the session before ending the day with losses of 1.31%. As we have mentioned in our previous report, the breach of crucial support levels of 17170 with gaps indicates resumption of the corrective down move. The index is now approaching its next support level of 16888 which is 50% retracement of the previous upmove. The index may give a minor pullback move from the mentioned support; but, the broader trend will continue to be negative unless the prices show any reversal signs. The immediate support for BankNifty index are placed around 16888 and 16620 whereas resistances are seen around 17200 and 17475.

Key Levels
Support 1 – 16888 Resistance 1 – 17200
Support 2 – 16620 Resistance 2 – 17475