The last hour of trade saw some selling pressure from key technical resistance levels as Nifty gave up gains from there for the second time in the day.
As signs of tiredness emerged, the market again highlighted the importance of some key technical levels that exist on the long-term weekly charts. In Monday’s session, Nifty faced strong resistance from levels close to the 200-week moving average, which currently stands at 10,376. Monday’s high of 10,393 and the 200-DMA will continue to offer resistance to the index throughout the week. Volatility index INDIA VIX moved 1.65 percent higher to 30.4600 as volatility increased marginally. On Tuesday, Nifty is likely to see a tepid start. The 10,355 and 10,395 levels are expected to offer strong resistance, while the supports will come in lower at 10,245 and 10,190 levels.
With the current risk-on setup still in the play, we do not rule out the possibility of some intermittent up-moves taking place. However, in all probability with Nifty facing resistance at a key resistance point on a weekly chart, the market is likely to take a breather at the current level. Going ahead, despite some intermittent up-move, the market may cool down a bit until and unless the 10,375-10,395 zone is taken out with force. We recommend avoiding any major long position and cautious approach ..
Nifty Bank (21708) Now the next logical target is 21877 as long as 21935 holds’ the Nifty unfolded strongly as expected and has closed in the green…technically Bank Nifty looks stretched and so if the up move continues then 22500 is possible as long as 21425 holds…