US markets were closed on Monday on account of the Labor Day weekend. Because of this, there will be no overnight cues. With no negative technical development expected overnight, Nifty is likely to make an attempt to move towards the Double Top in the 11,400-11,430 zone.
The market breadth has seen some improvement. However, Nifty will have to work hard and move beyond the 11,430 mark to rise above the Double Top resistance area and see incremental gains. Volatility subsided a bit;
Tuesday’s session is likely to see a stable start. The 11,400 and 11,445 levels are likely to act as key resistance points, while supports will come in at 11,300 and 11,255 levels.
Nifty currently trades out of the upward rising channel and also below the Double Top resistance point at 11,430. All in all, we can expect the consolidation to continue for some more time with the 11,430 level being a crucial point. For Nifty to recover and resume its upward move, it would be of paramount importance for the index to move past the 11,430 mark. Until this happens, Nifty will continue to oscillate in a defined range. We recommend avoiding aggressive shorts unless Nifty slips below ..
Nifty (11334) 11500 is a stiff resistance and the downside is open’ the Nifty unfolded weak as expected and traded lower to climb up to close mildly in the green…technically the range now seems to be 11200- 11500
Nifty Bank (23012) 23400 is a stiff resistance to deal with and the downside is open’ the Nifty Bank unfolded weak as expected and saw some support in the lower regions but yet closed in the red…technically now the range seems to be 22400-23500