Nifty Closes Below Its 100 SMA, Sharp Moves Likely In The Days Ahead

The benchmark index Nifty opened gap up by 50points on Monday at 10489 and went on to make a low of 10303. The index again failed to hold above levels of 10490 and continued its sustained selling pressure throughout the day and went on to take support at 10300 levels. Nifty has closed below the 100 SMA mark of 10393. And we have seen in previous instances that the index gives a sharp move from the 100 SMA mark. If it fails to do so in two or three trading sessions then we could see a further fall till 10250 – 10033 levels. And on the topside the index can see resistance at 10500 – 10600 levels.

Bank Nifty opened gap up by 120points on Monday at 25585 and went on to make a low of 24480 levels. The index again failed to hold the levels of 25300 and continued its sustained selling pressure throughout the day and went on to take support at 24800 levels. Bank Nifty has closed below its 100 SMA mark of 25423 for the second consecutive trading day. If it fails to cross these levels in the next few trading sessions we could see more downside till 24600 levels. And on the upside 25300 – 25450 levels will be the next resistance levels.

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