Pre-Market Commentary | NIFTY: stiff resistance is placed around 23,800-24,000 levels

MUMBAI, 11 SEPTEMBER: NIFTY on the daily chart formed a high wave candle with a lower high and a lower low signaling consolidation with corrective bias. Stock specific action continues to remain in focus. Immediate bias in the index continues to remain down and only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend.

Index to extend the last 1-month decline towards the 23,250 levels in the coming sessions being the 80% retracement of the entire previous up move 23,070-24,774. A breach below the same will open downside towards the short term support placed around the June low of 23,000.

Any pullback attempt will face immediate resistance at Wednesday’s gap area of 23,650. While stiff resistance is placed around 23,800-24,000 levels being the recent breakdown area and 20 days EMA.

Bank Nifty is likely to open gap down today on account of higher crude oil prices

Bank Nifty on the daily chart formed a small bullish candle with a lower high and a lower low signaling consolidation with corrective bias.

Index is currently placed around the lower band of the last 10-week range 56,000-58,700. Bank Nifty is likely to open gap down today on account of higher crude oil prices. A breach below the 56,000 levels will signal extension of the corrective decline towards 55,300 and 54,800 levels in the coming week.

Immediate bias in the index continues to remain down and only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend.

While sustaining above 56,000 levels on a closing basis will signal continuation of the last 10 weeks consolidation.

Report by: Pabitro Mukherjee, Deputy Vice President-Research, 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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