Pre- Market Commentary: Nifty: consolidation in range of 22900-22600

MUMBAI, 2 NOVEMBER:  NIFTY formed a bullish candle with a higher high and a higher low signaling extension of the pullback for the second session in a row. It started the session on a flat note and gained momentum as the session progressed to form an intraday high of 23,118 in the midsession. However, profit booking at higher levels saw the index gave up some of its gains and closed the session at 23,053 levels.

NIFTY sustaining above Friday’s low of 22,905 will signal extension of the current pullback towards 23,250 levels. While a breach below 22,900 will signal some consolidation in the range of 22,900-22,600.

Key resistance is placed at 23,175–23,250 resistance zone, marked by the confluence of last month’s high and the 50-day EMA, a sustained breakout above this zone would signal a pause in the recent downtrend and open fresh upside towards 23,500 in the coming sessions.

Bank Nifty is likely to consolidate in the range of 54,000-55,100

Bank Nifty formed a small bear candle signaling consolidation amid stock specific action after previous two sessions sharp up move. Index started the session on a negative note. Buying demand at lower levels saw the index recouped its decline and formed an intraday high of 55,068 in the mid-session. However, index failed to sustain at higher levels and gave up its gains to close marginally lower.

 On immediate basis index is likely to consolidate in the range of 54,000-55,100. Only a move above 55,100 will signal extension of the pullback towards 55,600 and 56,000 levels in the coming sessions.

Weakness below 54,000 will signal extension of decline towards key short-term support at 53,200-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move.

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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