The 11,245 and 11,290 levels will act as key resistance, while supports will come in at 11,100 and 11,000 levels.
The market is showing strong resilience to even modest declines. The discomfort is so much evident with even a small decline that it leads to short covering at lower levels.
Monday’s session may see a steady start. The 11,245 and 11,290 levels will act as key resistance, while supports will come in at 11,100 and 11,000 levels.
All and all, the narrowing of the trading range can be interpreted either way. In the current technical setup, it should not come as a surprise if Nifty shows some sharp bout of profit-taking. However, given the current structure, there are no signs of any major downside and corrective moves. If there is any, it is likely to get bought into.
There are higher chances of Nifty attempting to test the upper edge of the rising channel. However, in the same breath, we recommend following the up-moves while strict trailing stop losses at higher levels.
Nifty Bank (22662) 23200-23500 is a possibility as long as 22956 holds’ the Nifty bank traded a bit sluggish and closed in the red but has bounced from our very strong previous support of 22432… technically I would maintain that 22432 is a strong support zone to work with and upside to 22955-23200 is a possibility…