Angel Broking's Technical & Derivatives Report:Sensex (26653)/Nifty (8225)
Yesterday's session opened tad higher owing to positive global cues. Subsequently, we saw a bit of tussle between market participants during the first half. However, a sharp up move in banking conglomerates during the second half propelled a strong rally in our benchmark index to close convincingly above the 8200 mark.
The move has been very much on our expected lines as we have been quite vocal on a probable bounce since last 4 - 5 trading sessions. We expect this bounce back to extend towards 8250-8300 levels; whereas on the lower side, 8180 - 8150 would now act as a strong support zone for the market. Going forward, we expect stock specific bounce to continue in the market and hence, traders should look for a buying opportunity in individual stocks that have hammered down in the recent past and are trading around their strong supports.Nifty Bank Outlook - (18628)
Yesterday, the Nifty
Bank index opened with marginal gains and started moving higher from initial trades. Due to strong momentum in banking heavyweights, the Nifty Bank index continued to make higher highs throughout the session. Eventually, the index posted gains of 2.22 percent over its previous session's close.
Since last few days, we have been mentioning about how the '5DEMA' had acted as resistance in the recent corrective move in the Nifty Bank index. In yesterday's session, the index crossed over the mentioned average which led to a sustainable upmove during the day. After 12 trading sessions the index has managed to close firmly above the ‘5DEMA’. Also, the momentum readings on lower time frame chart are indicating positive traction from the oversold zone.
This should lead to further upmove in the index upto 18860 - 18980. Thus short term traders are advised to trade with positive bias. The intraday supports for the index are placed around 18450 and 18340 whereas resistances are seen around 18845 and 18960.Disclaimer
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