Pre- Market Commentary: NIFTY above 22,830 will open further pullback towards 23000/23175

MUMBAI, 29 OCTOBER: NIFTY formed a second consecutive high wave candle with a small real body and long shadows in either direction signaling consolidation amid high volatility. Nifty started the session on a negative note and tested 22,500 levels in the first half of trade. However, buying demand at lower levels near support area saw the index closing 200 points above the intraday low around the 22,700 levels.

Nifty in the last two sessions is trading around the 20 days EMA and the 50% retracement of the last week decline from 23,175-22,372 placed around 22,800-22,830 levels.

Going ahead a follow strength above Tuesday’s high 22,830 will open further pullback towards 23,000 and 23,175 levels being the confluence of last week high and 50 days EMA.

Failure to move above 22,830 will signal extension of the last four sessions consolidation in the range of 22,370-22,830. Within the consolidation immediate support is placed at 22,500 being the confluence of Wednesday’s low and retracement of last two sessions pullback.

Bank Nifty: only a move above 54,650 will open further upside towards 55,200

Bank Nifty formed a bullish candle signaling buying demand around the last month low. Index started the session on a soft note and formed an intraday low of 53,626 in the opening trade. However, buying demand at lower levels saw the index recovering more than 550 points from the day’s low to close around the 54250 levels.

On immediate basis index is likely to consolidate in the range of 53,600-54,650. Overall bias remains corrective and only a move above 54,650 will open further upside towards 55,200 levels.

Weakness below recent low 53,626 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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