Banking sector will again drive the market higher: Aditya Agarwala

economictimes.indiatimes.com:

«I believe markets could correct further from here on. 19,550, 19,500 is your immediate support zone. Keep a very close watch on the 20 DMA, that has been acting as a trailing stop loss line,» says Aditya Agarwala, Invest4edu.Last six days' trading pattern I was looking, from almost knocking at 20,000, we came back to 19,600 in five days. We tried to claw back to 19,800, did not sustain. We are back below the 19,600 mark. Dollar index is making me nervous as a trader at 101. Crude at 84 is making me nervous. And if that was not alone, yesterday after a long time I saw a big sell figure from the FIIs. Where should I keep my stop losses on Nifty and Bank Nifty now?My sense is markets will turn a little volatile.

Mind you, we are sitting on decent gains. We have not seen any significant correction from the time markets have broken out from that hurdle of 18,600, 18,700 and as you mentioned, we almost knocked at the door of 20K and from there we took a backseat and we reversed a bit. I believe markets could correct further from here on.

19,550, 19,500 is your immediate support zone. Keep a very close watch on the 20 DMA, that has been acting as a trailing stop loss line. Every time market corrects, it takes support at the 20 DMA and from there it reverses and makes higher high.

This time around, again, we are very close to the 20 DMA. If that is broken on the downside, then my sense is market could slide slightly down to levels of 19,300, 19,200 and Bank Nifty too could come in for a bit of a profit booking. But mind you, I believe once this profit booking is over, banking will be the sector which will again drive the markets higher.