NIFTY
Nifty bears had one of the fearful days hitting almost towards 16800. At one point of time, it looked the pit stop would be 16750 area. The clues come global did not help, sentiment remain fragile. As is the case, each session the moves are completely different and one more day where bulls took upper hand in the third and fourth session. This time they printed hammer in the smaller frames (PIP). New of Trump getting arrested later in the day grappled some attention as diversion but market was overwhelmed with volatility amid falling liquidity. While optically bear's held the nerve, there is symbolic take away to the bulls. Once again 16950 gets the support while 17150-17250 area supply zone. This zone is practically no man's land, hence a range low buy bias, range high sell bias is the way forward. With FOMC head tomorrow, markets may be reluctant to push aggressively. It is another 7 trading days to this month expiry.
NIFTYBANK
The write off of AT-1 bonds of CS, sends confidence signals across the globe. Every bank worth name fell to the south. None was an exception. The banking turmoil looks still not over as the First Republic Bank closed one more day near 50%. However, the markets reacted in the end with lots of recovery in the end. Bank Nifty ability to hold 38900 is vital for Nifty or now is it vice versa, nifty holding the 16850 area. It is bank nifty which held the nerve and pushed the nifty to climb, helped by FMCG. We have hammer in the Nifty and potential Inv H n S in the Bank Nifty, complete caution to the bears and some hope to the bulls. For the day longs stops 39180 for 39800 looks the way forward, though it looks a similar view held a couple of days ago. There is a possibility of slightly higher move in store. Bigger frames 38800-40200 dictates.