Market Wrap

Nifty consolidation range has been redefined and its narrowing, Range resistance & support seen at 24800-23850.

Nifty Daily Chart

Support levels: 24000-23850 Resistance levels: 24500

The triangular consolidation on daily chart has now narrowed to the 24800-23850 range, as breach below 24400 marks reversal on daily chart, sustained selling may take market lower to 24000-23850 levels.

Nifty was trading sideways in the choppy range of 24500-24650 since a week on the back of low volume. Technically, the market was missing thrust for further up move and a correction was due after 1000 point move in Nifty, the probability for an another move to 24800-25000 hence was slowly fading.

Trend-line support of 23800-23900 and psychological support of 24000 may act as trend deciding levels, below 23800 probability of bearish trend to 22500 increases significantly.

Introduction of CAS to discover closing price initially has resulted into volatility unusual closing for indices due to lower participation and broker front-ends being not ready for the rollout in the 1st week. The blindspot of index price from 3:15-3:35 and unusual closings seem to have affected traders’ morale for trading in the short-term.

The closing session though seem to have settled down in last 3 trading session, and the market attention may move towards the legitimate risk of US sanction based Tariffs for India & China and pro-longed closure of strait of Hormuz and reduced oil refining capacity around the world, we may see inflation in downstream crude products.

Tradzo Research
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