Pre- Market Commentary: Nifty: Resistance: 22820- 22950

MUMBAI, 27 OCTOBER: NIFTY formed a sizable bullish candle which remained enclosed inside previous session price range signaling consolidation with positive bias. Nifty started the session on a negative note and dragged lower in the first hour of trade to form an intraday low of 22387. However, buying demand near last week low saw the index recover its entire decline and closed 350 points above the days low around the 22750 levels.

Nifty on Monday’s session rebounded from the 80% retracement of its previous six sessions up move from 22180 to 23,175. Going ahead, follow through strength above 20 days EMA placed at 22,820 will signal further pullback towards the key resistance area of 23,100-23,200 being the confluence of last week high and 50 days EMA.

Failure to move above 22,820 will signal extension of the last two sessions consolidation in the range of 22,370-22,820.

 Bank Nifty: above Monday’s high 54,400 will open pullback towards 55,000 levels

Bank Nifty formed a bullish hammer like candle highlighting buying demand at lower levels. The index in the process snapped its four-session decline and closed around the 54,300 levels.

Going ahead, a follow through buying momentum above Monday’s high 54,400 will open pullback towards 55,000 levels in the coming sessions.

While weakness below Monday’s low 53,777 will signal extension of decline towards 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.

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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