Look At Todays Report..!! Will Nifty and Nifty Bank Recover From Lower Levels ???

 Nifty ON Daily Chart

Nifty might have gained only half a percent from the previous close; but
yesterday’s session was full of action as we first witnessed a correction
which was then followed by a decent rebound across the board.
Yesterday’s low precisely coincided with the daily ’89-EMA’ support
which we had mentioned in our previous commentary as well. Since
market was too oversold some respite was evident and this is exactly
what we witnessed throughout the day. Despite this, we still remain
cautious on the market and construe this as merely a technical
rebound. It’s better not to get carried away by these intermediate
recoveries because we are still not out of the woods yet. For the coming
session, 17550 – 17650 is to be seen as stiff hurdle and ideally it would
be a prudent ploy to lighten up longs if Nifty extends yesterday’s
bounce back. On the flipside, 17200 has now become a sacrosanct
support for the Nifty. Although we expect it to be breached soon, it
would be difficult to take a call whether it will happen in next two days
as we are approaching the November expiry.

NIFTY BANK ON DAILY CHART

Following the weakness from the previous session, the Bank Nifty
started on a negative note however it managed to find support on the
previous session low and started bouncing back. The bank index
eventually ended with marginal gains of 0.39% at 37273.
The BankNifty has now reached the October swing low and from here
this high beta index had witnessed a strong upmove. By returning back
to the origin point of upmove with oscillators in deep oversold
territory we witnessed some bounce back in yesterday’s session.
However, the momentum is strongly gripped by the bears and hence
we expect this support around 36500 – 36600 to be broken very soon.
Hence, any further extension of this bounce should be taken to lighten
up the existing long positions. Immediate resistance is seen around
37800 – 38000 levels.