Range Breakout On The Downside

nifty

India’s benchmark index Nifty opened gap up by 62 points at 10421 on Tuesday. The index made a high of 10437 on the first five minutes of the day’s trade. There on Nifty saw a gradual correction and made a low of 10376, which was just 17 points shy of its previous day close of 10359.

In the half hourly charts 10440 has been a resistance zone while 10300 has acted as a support for the index. Nifty saw fast selling in the last one hour of the day’s trade as the support of 10300 was broken. It’s been over three weeks that Nifty has traded between the range of 10300 – 10600.

The index has broken the support of 10300 and made a low of 10216 and closed at 10221. If it trades below 10200 the next support area will be 10124. And for the buyers 10320 will be a resistance to overcome and take control of the markets.

bank nifty

Bank Nifty opened 145 points gap up at 24964 on Tuesday. The index went on to make a high of 25040 in the first 30 minutes of the day’s trade. Thereafter Bank Nifty traded in a narrow range and made a low of 24745 and  in the last hour of the day’s trade it corrected sharply and broke the weekly support level of 24600 and made a low of 24362.

In the hourly charts the index will face resistance at 25000 and 25200 levels. The support area for the index is at 24600 which were breached today. So now the next support level will be 24300 – 24000. For the buyer to take control of the market, it has to trade and close above 24650 levels.

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