Pre- Market Commentary: short-term support in Nifty is revised higher towards 22800-23000

MUMBAI, 3 NOVEMBER: NIFTY formed a strong bullish candle with a higher high and a higher low and a bullish gap below its base at 23,118-23,207 signaling extension of the up move for the 3rd session in a row. Nifty started the session on a positive note and gained momentum as the session progressed to close the session near the high at 23,440 levels. 

NIFTY in the process closed above the 50 days EMA and the last month high (23,175) signaling pause in the last 2 months corrective decline. Strong up move of 1000 points in just 6 sessions highlights strength.

NIFTY holding above the Monday’s gap area of 23,118-23,207 will signal extension of the current up move towards 23,700-23,800 levels in the coming sessions being the 61.8% retracement of the previous entire decline from 24,774-22,180. 

The short-term support in Nifty is revised higher towards 22,800-23,000 levels being the confluence of the recent breakout area and the key retracement of the current up move from 22,372- 23,440.

Bank Nifty: above 55,100 will signal extension of the pullback towards 55,600 and 56,000

Bank Nifty formed a small bullish candle which remained enclosed inside previous session price range signaling consolidation with positive bias. Nifty started the session on a positive note. It faced resistance around 55,000 levels and gave up its gains in the midsession. However, buying demand at lower levels saw the index rebounded from near previous session low and closed near the day’s high around 55,000 levels.

Going ahead, index moving above 55,100 will signal extension of the pullback towards 55,600 and 56,000 levels in the coming sessions. Failure to do so will lead to consolidation in the range of 54,000-55,100.

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.

Repot 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.)