Narrow trading range in Nifty leads to upside breakout: current rally is treated as pull back rally
One should refrain from initiating any index trades as clarity will emerge only if 10300 is breached on the down side or 10700 on the upside. Till then let’s look at stock specific action. As we move towards the end of the February series, we note that the trends are once again showing some signs of a pullback
If nifty hold above 10430 to extend its move towards 10550 then 10620 – 10700 levels. An emphatic breakthrough of this barrier is needed to strengthen the trend reversal and take the index northwards to 10800 and then to 10800 and 11000 then 11300 levels in the short term.
Major supports of the Nifty are 10300 then 10000 – 10100 – 9700.
Bank Nifty tests the key support at 25000 and reverses higher from this level. A conclusive rally above 25500 can push the index northwards to 25880 and 26000 then 26300 in the short term; this could be a corrective up move.
But a slump below the immediate support level of 25000 will negate the bullish view and drag the index down to 24750 then 24500 – 24200 and finally 24000.