Market Update
Harsh Patel
Founder
Nifty bounces to 25800 from intraday low of 25473 on the news of India-US trade talk, Will Nifty move up to 26000? Read to find out where is market heading.
Nifty Hourly Chart
Support levels: 25700 Resistance levels: 25950-26000
On Monday Nifty gradually made low of 25473 against our expected support of 25450, however due to oversold levels and positive comments from US Ambassador on Trade-talks, the market witnessed sharp short covering in the 2nd half to 25800, which is 38% retracement level for the recent fall from 26373.
Nifty may re-test the 'Rising Wedge' breakdown area near 25900-25950 level, coincidently a 50% retracement level is seen at 25923 near the break down area, which may prove to be a supply zone.
Our analysis suggests US Ambassador's statements were just passing comments and shouldn't be taken at face value until there is some real outcome. On the higher side a close above 26030 or crossing 26100 may nullify the breakdown, till then downside risks remain elevated for the market.
Max OI was seen in 26000 Call & 25500 Put suggesting a volatile expiry.
Tradzo Research
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