Market facing resistance in the 10630 zone; Short term outlook for the market remains negative
After a good 8% correction seen from highs, the Nifty has started showing resilience near 10300-10400.
With the decline in volatility near these levels, it seems the index may try to form a short-term base near these levels and may consolidate for some time.
we expect the Nifty to hold the past four week’s lower band of consolidation of 10300 and continue to oscillate within broader consolidation range of 10300–10650 to form a base amid stock specific action in coming weeks.
No respite was seen for banking stocks. They continued to face the heat. The index ended below the support levels of 25000.
Most private sector banks ended below support levels, which is likely to keep the index move in check.
On the upside, the index is likely to face a hurdle near 25100 as huge concentration of OI is open in Calls.
The index has immediate resistance around 25800-25900 being the 38.2% replacement of the recent decline (27652-24850) placed around 25900.
The major short-term support is placed in the range of 24600- 24500 region.