Nifty has been on a roller coaster ride.
The Nifty started on a positive note on Friday but failed to keep the momentum going, shedding all gains to close in the red at 10226.
While we enter a fresh week, Monday’s trade is likely to see a stable and strong opening ensured by strong global markets. Having said that, the likely strong opening will see the market open above the 10,275-10,280 zone. However, it would be once again critical to see if the market sustains and maintains itself above those levels.
From past 3 days, the Nifty has been moving in a narrow range between 10200 and 10275, with brief thrusts above 10275 and brief declines below 10200 giving a range of just 75 points.
If the level of 10275 crosses then 10330 is the initial hurdle for the market that it needs to cross. Once it does, we may expect some higher levels on intermediate basis i.e. 10360 -10420 – 10500 and 10,600.
Multiple and Major Support zone levels are 10000-9950.
Bank Nifty plummeted 606 points or 2.4% in the previous week, breaking a key support of 25000. But the index now hovers above the next key support at 24000.
It can decline and test this support in the near future.
An upward reversal can encounter resistances at 24500 – 24800 and break above 25000 level can extend the corrective rally to 25500 and 25800 levels.
We will cautious as long as the index trades above the 24000 base level.
Break below the 24000 level will reinforce the bearish momentum and pull the index down to 23600 – 23500 – 23200.
*This material is for information purposes only and should not be constructed as an offer or solicitation of an offer to buy or sell any securities.