PRE MARKET COMENTRY: Nifty is likely to extend its consolidation and trade in the broad range of 23115-23650

MUMBAI, 23 SEPTEMBER: NIFTY on the daily chart formed a bearish candle signaling selling pressure at higher levels as Nifty snapped its 4 sessions up move and closed lower below 23,350 levels. Index in the last 5 session has been consolidating within last Tuesday sizable bearish candle highlighting consolidation after recent sharp decline.

Nifty is likely to extend its recent consolidation and trade in the broad range of 23,115-23,650 in the coming sessions.

On the higher side 23,600-23,650 will act as major resistance being the last week high and the recent breakdown area. The index needs to sustain a higher high and higher low formation and reclaim 23,650 to signal a pause in the ongoing downtrend.

On the downside, a breach below the previous week’s low of 23,115 will resume the corrective phase towards the 23,000 and 22,800 levels.

 BANK NIFTY continues to trade below key resistance level of 57,000

Bank Nifty formed a bearish candle with almost identical high as that of previous session signaling selling pressure at higher levels. Index in the last 5 session has been consolidating within last Tuesday sizable bearish candle highlighting consolidation after recent sharp decline.

Bank Nifty is sustaining above the 56,000 level, which coincides with the lower band of the last 12-week trading range of 56,000–58,700. Despite the stabilisation, the broader structure remains cautious as the index continues to trade below key resistance level of 57,000 and has yet to establish a sustained Higher High–Higher Low formation on weekly chart.

Bank Nifty is likely to extend its recent consolidation and trade in the broad range of 55,700-57,000. A sustained close above 57,000, accompanied by a Higher High–Higher Low formation on the daily chart, would indicate a potential pause in the prevailing downtrend.

Immediate support is placed at 56,000-55,700 levels being the almost identical low of the last 2 weeks lows. A decisive breach below this level could extend the corrective move towards 55,200, followed by 54,800.

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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