In a wide-ranging and volatile session, Nifty hung precariously near its crucial levels and ended the session on a modestly negative note. The market had seen a buoyant start and stayed strong for the entire first half of the session. As mentioned in the previous technical note, Nifty’s staying above the 11,430 level was crucial.
Nifty is now placed at a point where the risk-reward is just not favorable to take any aggressive directional view. Nifty has so far kept its head above the 11,430 level. Tuesday’s opening and the trajectory that the index takes would be extremely crucial.
Tuesday’s session might see a jittery start. The 11,490 and 11,550 levels will act as key resistance points, while supports will come in at 11,400 and 11,310 levels.
Overall, the market is likely to remain jittery at all levels unless the 11,430-11,500 zone is taken out convincingly. Until this happens, the market, in general, will continue to face resistance at higher levels. As mentioned in the previous note, market action will continue to be highly stock and sector-specific. We reiterate avoiding heavy index positions and guarding profits at each level on either side. The risk-reward would be more favorable if a highly select set of defensive stocks are preferred over high-beta stocks. A cautious approach is advised or the day.
Nifty (11440) we would maintain that 11562 is still a possibility as long as crucial 11417 holds’ the Nifty unfolded as expected and achieved our target and sold off to close in the red…technically now if Nifty slides then a 11350-250 is not ruled out…stiff resistance exists at 11490…
Nifty Bank (22101) we would look at crucial support at 22200 and trade long and if 22200 goes then we can see it slide to even 21750…but it would good place to buy if it trades above 22700 for a target of beyond 23000…tricky trading Nifty Bank’ the Nifty bank saw the high near our resistance of 22700 and sold off to close in the red…technically downside to 22000 a very strong support or 21500 is a possibility…stiff resistance exists at 22700