IGI Logo

Below is Quote on Daily Market Wrap Up By Mr. Rajesh Bhosale,Technical Analyst, Angel One Ltd

Bank Nifty commenced the day with a gap down opening and, despite an initial attempt of recovery, the prices remained under pressure throughout the first half of the session. The selling pressure persisted during the second half, but during the penultimate hour, there was a notable rebound that helped prices regain some of the lost ground. Eventually, the prices concluded with a cut of 1.31%, to end tad below the 45000 mark.

Following three lackluster days, the high beta index finally showed some momentum, albeit on the negative side. The encouraging aspect was the late-session recovery; however, it's concerning that prices have broken below key short-term support levels, indicating distortion on the charts. The daily chart reveals a breach below the trend line connecting major higher bottoms, and the closure below the 20 EMA that is accompanied by a bearish gap. The weakness witnessed today was largely influenced by global cues, and if this trend persists, there is a possibility of further profit booking in the next few sessions. In such a scenario, the immediate hurdle is expected to be around 45400 – 45500, which corresponds to the breakdown levels. On the contrary, the low of today, around 44700, along with the 50SMA coinciding with the previous swing low at 44500, is likely to provide the next immediate support zone.

Traders are advised to closely monitor these levels and trade accordingly on the weekly expiry day. Additionally, it's crucial to exercise caution due to the likelihood of heightened volatility, and one should avoid taking unnecessary risks.

Above views are of the author and not of the website kindly read disclaimer