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Pre- Market Commentary

Nifty

CMP: 24,287.60

Index formed a small bear candle with a small lower shadow which maintained lower high and lower low highlighting corrective bias. Nifty is forming lower high and lower low in the last 7 sessions, index need to break the sequence and start forming higher high and higher low in the daily chart to signal resumption of the up move.

The index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions.

Index in the last 10 sessions is seen consolidating in a narrow range retracing just 38.2% of its previous 7 sessions sharp up move from 23,606 to 24,774. A shallow retracement of its previous up move highlights a higher base formation. We believe the current breather should be used to accumulate quality stocks.

Index has immediate support at 24,200 levels being the confluence of 100 and 50-day EMA. While key short-term support is placed at 24,000-23,800 being trendline support joining last 4 months lows and 61.8% retracement of previous up move 23,606 to 24,774.

Intraday Levels for Nifty

Resistance: 24,360 and 24,430
Support: 24,190 and 24,100

Bank Nifty

CMP: 57,497.80

Bank Nifty formed a high wave candle as buying demand emerged from the rising trendline joining last 4 months low and 50 days EMA.

The broader 8 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum. Within the consolidation index is facing resistance around 58,000 levels, a move above the same will open upside towards 58,500-58,700 levels while failure to move above 58,000 will lead to consolidation in the broad range of 57,000-58,000.

In the smaller time frame Bank Nifty in the last 10 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation.

On the downside, a decisive break below 57,000 (50 days EMA & rising trendline support) would signal extended corrective move towards the 56,500, which forms the lower band of the broader consolidation channel.

Intraday Levels for Bank Nifty

Resistance: 57,760 and 58,000
Support: 57,210 and 56,900

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