Pre- Market Commentary: Nifty has support at 22,500-22,400 levels

MUMBAI, 23 OCTOBER: NIFTY formed a Doji candle with long shadows in either direction highlighting intraday volatility. It maintained lower high and a lower low signaling continuation of the corrective bias. Index traded in a 230 points range and closed below the 22,700 levels.   

Nifty is likely to extend the last three sessions corrective consolidation and trade in the range of 22,500-23,150. Index has support at 22,500-22,400 levels being the 80% retracement of the last two weeks pullback 22180-23,175. A breach below 22,400 will negate the last two weeks pullback and open downside towards recent low of 22,180 levels.

On the higher side immediate resistance is placed at 22,860 levels being the presence of 20 days EMA, while current week high of 23,175 is likely to act as major hurdle in the coming sessions.

Bank Nifty: has key short-term support at 53,500-54,000

Bank Nifty formed a high wave candle with a small real body and shadows in either direction highlighting intraday volatility. Index maintained a lower high and a lower low indicating continuation of the corrective decline for the third session in a row.

Going ahead, a follow through weakness below Thursday’s low 54,459 will open further downside towards 54,000 and 53,500 levels in the coming sessions.  

Index has key short-term support at 53,500-54,000 being the confluence of the recent low and the key retracement of the previous major up move.

On the higher side only a move above 55,400 will signal pullback towards 56,000 levels in the coming sessions.

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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