Bank Nifty may test 28500 zone on upside

Hyderabad, Sept. 16: Bantia Furniture, the manufacturer and importer of furniture having a cumulative show room space of over 2 lakh square feet, has been honoured as Outstanding Retailer of India by Bajaj Finserv Ltd at its annual meeting of all-India furniture retailers. Bantia has been judged on parameters like customer experience, services, product quality, price and promotion and adjudged as Outstanding by the panel of the financial services company. Sensex and Nifty-50 indices and the broader market received the crude oil shock on Monday morning after weekend drone attack on Saudi Arabia's crude oil production facilities. Sensex fell 0.70 per cent or 261.68 points to close at 37123.31 while Nifty-50 Index fell 0.65 per cent or 72.40 points to close at 11003.50.

The broader market outperformed the benchmark indices as BSE MidCap Index was down 0.27 per cent and BSE SmallCap Index gained 0.64 per cent.

The foreign portfolio investors were net sellers of Indian equities worth Rs 751.26 crore while domestic institutions were net buyers by Rs 308.26 crore.

Technical View Manav Chopra, Head of Research — Equity, Indiabulls Ventures said, "Bank Nifty showed some signs of resilience on the downside. We remain constructive on the path of recovery for the Bank Nifty. Index is likely to test 28500 zone on the upside and we continue to maintain our bullish stance for the Bank Nifty. In the near term 27600 zone remain important support on the downside. A sustained breach above 28500 will have strong bullish implications however, 28500 remains a sticky zone and short term traders should look to book profits near the resistance zone," Chopra said.

Market View

Ajit Mishra, Vice President, Research, Religare Broking said, "The Indian markets started the week on a negative note as sharp surge in crude oil prices and depreciating rupee impacted sentiments. The markets traded volatile throughout the session. The broader markets outperformed the benchmark."

"The sharp surge in crude oil prices has definitely impacted sentiments as it has an adverse impact on Indian economy. Going forward, investors would keep a close watch on geopolitical developments as any further escalation could take oil prices even higher and it would be detrimental for Indian markets and economy. Moreover, the FOMC meet on September 17-18 would also be on investors' radar wherein there are expectations for a rate cut," Mishra said adding "commentary on growth and rate outlook would be a key factor to watch out for."

— Ravi Ranjan Prasad