Technical TALK: Nifty has short-term support placed at 24,000-23,800 levels

MUMBAI, 27 AUGUST: Index formed a bearish candle with a small upper shadow signaling profit booking at higher levels around last week high and 52 weeks EMA. Nifty started the session on a positive note but failed to sustain above last week high 24,360 and gave up its intraday gains to close around the 24,200 levels Failure to close above last week high will signal consolidation in the range of 24,000-24,350. While a close above 24,360 will signal extension of the pullback towards 24,550 and 24,700 levels in the coming weeks.

Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,700 in the coming sessions. 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 up move from 23,606 to 24,774.

Bank Nifty formed a small bullish candle with an upper shadow signaling profit booing at higher levels around the 58,000 levels.

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 58,000 levels. Index sustaining above the same will open upside towards 58,500-58,700 levels in the coming sessions being the upper band of the recent consolidation. While failure to move above 58,000 levels will signal consolidation in the range 57,000-58,000 levels in the coming sessions.

In the smaller time frame Bank Nifty in the last 16 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.

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)

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