India’s benchmark index Nifty opened gap down by 16 points at 10233 on Wednesday. The index made a high of 10243 in the first hour of the day’s trade. There on Nifty saw a gradual correction and made a low of 10142, which is 10 points shy of its 200 SMA of 10132.
In the hourly charts 10300 has been a support zone while that support is broken the index has been correcting without a stop. Hence fast selling could be seen if the support of 10078 is broken.
If Nifty trades below its current support at 10078, the next support area will be 9980 which is below the 200 SMA mark for the index. However if Nifty trades above 10270 then a new bull rally could be expected till 10420 levels.
Bank Nifty opened 114 points gap down at 24334 on Wednesday. The index went on to make a low of 24230 in the first hour of the day’s trade.
Thereafter Bank Nifty traded in a narrow range and kept on making new lows till 24097 till the last hour of the day’s trade. In the hourly charts the index will face resistance at 25000 and 25200 levels. The support area for the index is at 24050.
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 24600.