Index Rebounds Sharply After Gap-Down Opening - GEPL Capital
Market News:
• Zydus Lifesciences In Focus As US FDA Flags Data Integrity, Quality Control Issues At Gujarat Plant.
• Siyaram Recycling Industries secured a Rs 17.28 crore order from Green Metals FZCO, Dubai, for the supply of brass billets.
• NLC India signed an mou with IPICOL for coal gasfication project.
Technical Summary:
The index opened on a gap-down note and touched an intraday low of 22,387 during the initial minutes. However, strong short covering emerged thereafter, pushing the index to a day’s high of 22,721 in the final hour, indicating a significant intraday reversal and improving market sentiment. On the daily chart, the index formed a bullish engulfing candlestick pattern, reflecting renewed buying interest and a positive undertone. Among sectors, Metal and Cement outperformed, while Media and Consumer Durables emerged as the major underperformers. Going forward, 22,800 will act as an immediate resistance, while 22,500 remains a crucial support level. A sustained move above 22,800 could strengthen the recovery and provide further upside momentum, whereas a decisive break below 22,500 may revive selling pressure and lead to further downside.
Levels to watch:
The Nifty has its crucial resistance 22800 (Pivot Level) and 23180 (Key Resistance). While support on the downside is placed at 22500 (Pivot Level) and 22100 (Key Support).
What should short term traders expect?
The Index can be Long above 22800 for the potential target of 23180 the stop loss of 22500 Level.
Technical Data Points
NIFTY SPOT: 22753.20 (+0.68%)
TRADING ZONE:
Resistance: 22800 (Pivot Level) and 23180 (Key Resistance)
Support: 22500(Pivot Level) and 22100 (Key Support).
STRATEGY: BULLISH above 22800 (Pivot Level)
BANK NIFTY SPOT: 54366.70 (+0.15%)
TRADING ZONE:
Resistance: 54700 (Pivot Level) and 56100 (Key Resistance)
Support: 53700 (Pivot Level) and 53000 (Key Support).
STRATEGY: BULLSH above 54700 (Pivot Level)
SEBI Registration number is INH000000081.
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