Pre- Market Commentary: Nifty, move above 22,776 will open further pullback towards 23000-23100

MUMBAI, 14 OCTOBER: Index has formed a strong bullish candle with a higher high signaling strong pullback from 22,300 levels on the Nifty weekly expiry session. Index started the session on a soft note, however strong buying in the mid-session saw the index gaining momentum as the session progressed. Nifty moved above the immediate hurdle area of 22,600 in the last hour of trade to close firmly above 22,700 levels.

In the coming sessions a move above last week high of 22,776 will open further pullback towards 23,000-23,100 levels in the coming weeks. Failure to move above 22,776 will signal consolidation in the range of 22,300-22,750.

On the higher side Index need to start forming higher high and higher low on a sustained basis in the weekly chart and reclaim 23,100 levels being the recent breakdown area to signal a pause in the last 2 months sharp decline.

Bank Nifty: up move above 55,500 will signal extension of the pullback towards 55,900 and 56,500

Bank Nifty formed a sizable bullish candle with a higher high and a higher low signaling strong buying demand from the lower levels. The index in the process closed around the 55,500 levels.

Going ahead, a follow through up move above 55,500 will signal extension of the pullback towards 55,900 and 56,500 levels in the coming sessions being the recent breakdown area.

Failure to move above 55,500 will signal some consolidation in the range of 54,000-55,500 levels in the coming sessions.

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

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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