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

nifty and banknifty market outlook

Market Cues:

Indian markets are expected to open flat tracking SGX Nifty. U.S. stocks ended the Wednesday’s session slightly lower, taking a pause after two straight days of gains. Main indexes retreated as Fed Chairwoman Yellen hinted that a 25bp rate hike in December would not derail the economy or housing market. Notably, Energy and Consumer Discretionary were the biggest decliners. European stock markets rallied on Wednesday after ECB President Mario Draghi reiterated that bank is ready to provide more stimulus in December if required.

These gains trimmed after Janet Yellen hinted at rate hike possibility in Dec-2015. For FTSE 100, Glencore was the biggest gainer of the day as it reported significant progress on its plans to cut down the net debt by FY2016-end. Indian markets lost the previous day's gains on Wednesday’s trading session as benchmark indices fell marginally, despite the positive global cues. Indices started on a strong note, with Nifty trading above 8100-mark, but could not sustain gains in the afternoon trade as profit booking was seen across heavyweight stocks. Private sector bank, healthcare, technology and select oil stocks pulled the market lower.

 Sensex (26553) / Nifty (8040)

Yesterday, our benchmark index opened with nearly half a percent upside gap citing to cheerful mood across the globe. However, once again, the unsure bulls were overshadowed by the bears as we witnessed a decent correction throughout the session to close tad below the 8050 mark. As mentioned in our previous report, the index made an attempt move higher. However, similar to Tuesday's session, our markets faced a strong selling pressure at higher levels, which is not an encouraging sign. Despite this, we maintain our opinion that the index is likely to remain within a range of 200 points before confirming next direction of the market. On the higher side, 8120 – 8180 are likely to act as a strong resistance; whereas, 7950 is seen as a crucial support. Traders can focus on stock specific moves by following proper exit strategy.

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

 Bank Nifty Outlook - (17221)

Yesterday, the Bank Nifty opened with an upside gap of more than 100 points and started correcting from initial trades. The selling pressure was very sturdy as the index continued to make lower lows throughout the session. The banking index breached the low of last two sessions and eventually ended the session with a loss of 0.60 percent over its previous close. Going forward, a sustainable move below 17170 levels may drag the Bank Nifty towards 16930. On the flipside, the immediate resistance for the index is placed at 17466 and 17565 levels.

Key Levels
Support 1 – 17170 Resistance 1 – 17466
Support 2 – 16930 Resistance 2 – 17565

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