Pre- Market Commentary: Nifty: 23175 is likely to act as major hurdle in the coming week

MUMBAI, 26 OCTOBER: NIFTY formed a bearish candle with a long lower shadow highlighting continuation of the corrective decline for the fourth session in a row. It maintained a lower high and a lower low signaling continuation of the downward bias. Nifty started the session on a positive note. However, sharp selling pressure post opening saw the index dragged lower below its previous session low and formed an intraday low of 22,372. Buying demand at lower levels saw the index closed off the low at 22,600 levels.

Nifty during last 4 sessions retraced 80% of its previous six sessions up move from 22180 to 23,175. Going ahead, follow through weakness below last week low 22,372 will open downside towards the current month low of 22,180.

Index holding above last week low of 22,372 will lead to consolidation in the range of 22,370-22,850 in the coming week. On the higher side immediate resistance is placed at 22,850 levels being the presence of 20 days EMA, while previous week high of 23,175 is likely to act as major hurdle in the coming week.

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

Bank Nifty formed a sizable bearish candle highlighting continuation of the corrective decline for the fourth session in a row. Index maintained a lower high and a lower low indicating continuation of the corrective decline as index closed around the 54,300 levels.

Going ahead, a follow through weakness below 54,000 will open further downside towards 53,500 and 53,100 levels in the coming sessions. 

Index has key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move.

On the higher side only a move above 55,150 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)

(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો. વધુમાં અત્રે પ્રગટ થયેલા કોઇપણ સમાચાર કે વિગતો સાથે businessgujarat.in અંશતઃ કે સંપુર્સણપણે સહમત નથી.)