Market Update

Nifty trades Range bound, 24000-23800 Key support levels to watch out on the downside.

Nifty Hourly Chart

Support levels: 24000-23800 Resistance levels: 24300

Nifty gains in the 1st half to 24288.90 led by Reliance on GRM margins sky rocketing as the west Asian crisis moves downstream to crude products and banks firing on better start of the earning season.

Technically, Nifty failed to continue the down move below 24000 after consolidation for the down move from 24500 to 23800, and turned sideways. Now Range breakout above 24200 is likely to fail as market remains range bound and lacks thrust for followup buying, key resistance seen at 24300.

Nifty may attempt to complete the Head & shoulder pattern below 24150, with a pattern support of 23800. A technical breakdown below 23800, may take Nifty lower to theoretical target of 23100/23000.

Coincidently 23000 level is recent swing low and could act as important pivot in coming weeks.

Momentum Radar

On the Momentum Radar - Nifty50 basket shows sign of exhaustion or profit booking. On the daily time-frame, distribution has slightly negative tilt, Range bound activity with stock specific activity and ‘Sell on High’ behaviour in the market sentiment expected.

Tradzo Research
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