Pre- Market Commentary: NIFTY has key support at 24,000-23,800 levels

MUMBAI, 1 SEPTEMBER: Nifty on the daily chart formed a small bearish candle with a long lower shadow indicating corrective consolidation and buying demand at lower levels around 24,000 levels. Index on Monday’s session tested the 24,000 levels, going ahead a decisive break down below the 24,000 level will signal further correction towards the lower band of the range placed at 23,800 levels. On the higher only a move above 50 days EMA placed around 24,190 will open pullback towards 24,300-24,350 levels in the coming sessions.

Overall, we expect the index to extend the recent consolidation and trade in the broad range of 23,800-24,600 amid stock specific action. Within the consolidation last two-week highs placed around 24,380 will be the key hurdle for the index only a move above the same will signal positive movement. Failure to move above the same will keep the bias corrective.

Nifty has key support at 24,000-23,800 levels being the confluence of the previous major gap area and 61.8% retracement of previous up move from 23,606 to 24,774.

BANK NIFTY: consolidation in the range 57,000-58,000 levels in the coming sessions

Bank Nifty formed a bullish candle with a lower low and a higher high signaling buying demand from the 50 days EMA. The broader 9 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum.

Within the consolidation index is facing resistance around 58,000 levels. Index sustaining above 58,000 levels will open upside towards 58,500-58.700 levels. Failure to sustain above 58,000 levels will signal consolidation in the range 57,000-58,000 levels in the coming sessions.

In the smaller time frame Bank Nifty in the last 19 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation.

Index has key short-term support at 56,500 levels being the confluence of the 52 weeks EMA and the lower band of the last 9 weeks range.

Report by: Bajaj Broking

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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