India’s benchmark index Nifty opened gap down at 10428 on Monday. The index made a high of 10429 on the first minute of the days trade. There on Nifty saw a gradual correction and made a low of 10320, which is 20 points shy of it’s weekly low of 10300.
In the hourly charts 10370 has been a resistance zone while 10300 has acted as a support for the index.
Hence fast selling could be seen if the support of 10300 is broken. It’s been over three weeks that Nifty has traded between the range of 10300 – 10600.
If Nifty trades below its current support at 10300, the next support area will be 10124 which is also the 200 SMA mark for the index. However if Nifty trades above 10450 then a new bull rally could be expected till 10650 levels.
Bank Nifty opened 70 points gap down at 24831 on Monday. The index went on to make a low of 24682 in the first 5 minutes of the day’s trade.
Thereafter Bank Nifty traded in a narrow range and made a high of 24873 in the last hour of the days trade. In the hourly charts the index will face resistance at 25000 and 25200 levels. The support area for the index is at 24600.
In the last few weeks the index has traded between 25800 – 24600. For the buyer to take control of the market, it has to trade and close above 25000.