Table of Contents
The Nifty lost 27 points over the day to close at 24194. It was a classic inside candle yesterday. Just a healthy consolidation day at the markets. The indices stayed sideways the entire day. The IT index was the top gainer followed by FMCG and Small-cap. The market breadth and the advance – declines were in the favour of bulls. Broader markets are quite stable. Dow Jones hits a fresh new high again yesterday and is moving from strength to further strength. Dollar Index trades near 106.8 levels. We have consecutive 3 days high exact at the same level on the Dollar Index – hence hinting – 107.5 – 108 are tough resistances to cross. FII’s continued to be buyers second consecutive day – which is a positive takeaway.
Tech View
Technically, the market is consolidating, and there is volatility contraction after two big days. The setup remains in favour of bulls. Last 2 trading session has almost got similar highs and lows. Which acts as immediate levels . The moving averages stand at 24500 and this is where previous swing highs stand. Hence this level will act as the strong resistance where as 23950 is the important support now, and only on a close below the same would we have any negative triggers.
Looking at the entire setup – looks like the index has made a bottom, and the opportunity lies being stock-specific. All dips towards the same should be used as a buying opportunity.
Key Levels for Today
| Index | Support | Resistance |
|---|---|---|
| Nifty 50 | 23,956 | 24,500 |
| Bank Nifty | 51,774 | 52,564 |
Conclusion
Looking at the entire setup – looks like the index has made a bottom, and the opportunity lies being stock-specific. All dips towards the same should be used as a buying opportunity with super risk – rewards.
