And once we are back to that kind of volatility is when we will get a more meaningful advance breaking out beyond the entire trading zone that we have made around here.
But in the meantime, there is a chance that we will continue to swing both ways inside this trading range. So, like I said, the immediate resistance is 23,400, above that it is 23,600 and on the downside we will be looking at around 22,800 as one of the first supports or lower.
What will drive it? Usually is hard to say, just like the bounce also while we could have retraced, we have done a lot more than 61% and the reasons just make themselves up, so that is how it is. With Bank Nifty outperformance, there are two levels that we are going to be watching. One of them we are testing today, 52,750 and above that 53,174. Now, these are going to be two key levels that will determine whether this can be a sustainable ongoing move or whether there is still some near-term shock left to the financials. Clearly, they have outperformed because they did not break the March low. The banking index of various financial stocks did not go below the low that they made in March like the Nifty did and in that sense, it is an outperforming sector. But again, if it is likely to consolidate more, if I am saying that for Nifty, then these are the levels within which Bank Nifty could also remain in a consolidative phase. But once it gets past 53,174, I would like to believe then that that possibility is out and we are looking at a more continued move higher in banking, so that is what we are going to be watching.
Give us some sense for the life insurance companies or rather the whole insurance pack because we have the numbers from ICICI Pru and taking cues from that probably these life insurance companies like HDFC Life, SBI, they are doing well. Do you believe that there is a room for adding a fresh long over here?Rohit Srivastava: So, there are two things. One is, of course, we discussed the short term. We do not know what kind of shocks the news flow will bring to price action. But as in when an opportunity presents itself on dips, the financials are the outperforming segment, which includes insurance companies as of now. And you want to participate in buying the dips within financials, insurance or whichever segment you like.
Like I have a preference for NBFCs. So that is what we look at on every dip that we get an opportunity to buy into them. We are only trying to navigate any short-term noise that may show up. So, wait for those because you will get dips along the way. Nothing is going to be one way and just use that as an opportunity.
