TECHNICAL TALK: Intraday Levels for Nifty: Resistance: 24,195 and 24,300, Support: 24,025 and 23,950
AHMEDABAD, 20 AUGUST: Index formed a third consecutive bearish candle which maintained lower high and a lower low highlighting continuation of the corrective bias. As mentioned in earlier edition, index is forming lower high and lower low in the last 9 sessions, index need to break the sequence and start forming higher high and higher low in the daily chart on a consistent basis to signal pause in the current corrective trend. Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.
Index in the last 12 sessions is seen consolidating in a range with a corrective bias, while retracing 61.8% of its previous 7 sessions sharp up move from 23,606 to 24,774. A shallow retracement of its previous up move highlights a higher base formation. The daily stochastic has approached oversold territory after last 12 sessions corrective decline with a reading of 10, hence a pullback in the coming sessions cannot be ruled out. Nifty has short-term support placed at 24,000-23,800 levels being the confluence of the trendline support joining last 4 months lows, previous major gap area and 61.8% retracement of previous rally.
Intraday Levels for Nifty: Resistance: 24,195 and 24,300, Support: 24,025 and 23,950
Intraday Levels for Bank Nifty: Resistance: 57,550 and 57,750, Support: 57,000 and 56,770
Bank Nifty formed a high wave candle with a lower high and a lower low signaling consolidation with corrective bias around the 50 days EMA. The broader 8 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum. Within the consolidation index is facing resistance around 57,500-57,800 levels. Index sustaining below the same will open down side towards 56,500-56,200, being the confluence of 200 days EMA and the lower band of the broader consolidation range.
In the smaller time frame Bank Nifty in the last 12 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation. On the higher side a move above 57,800 will open up side towards 58,200 and 58,700 levels in the coming weeks being the upper band of the recent consolidation.
REPORT BY Bajaj Broking Pre-Market Commentary
(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.)
