NIFTY ON 26-08-2022
The rangebound trade continued during the session where the lower range is 17500 and upper is 17700.
Missing any vital cue, Index seems to be reluctant to break/breach the range on either side.
METAL and IT offered support to the Index while profit booking was observed in BANK.
Index closed at 17558.90 with a marginal gain of 0.21%, leaving lesser scope to discuss the action under this segment.
Technical View : (Daily Chart)
NIFTY has made a small Bearish candle which has been formed after one Bearish Engulfing candle and technically be considered as a confirmation candle for further fall.
NIFTY is moving above EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which can be interpreted as the short-term trend is in the positive territory and it is intact.
RSI has reclaimed the 60 Level which may be interpreted as the built-up of bullish momentum in the Index.
Support and Resistance : Daily Chart
17425-17345 will work as support levels for NIFTY. If Index slips, 17200 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 17625-17700.
View for Traders:
As the Global cues are negative and there is not much strength shown on charts there are high chances that NIFTY will retest 17350 level during tomorrow’s session.
As we had discussed in the last post that 17500 is quite vital as if it is breached then there are high chances that NIFTY will retest 17345-200 level. On Friday evening, the global cues have signalled that NIFTY will open gap-down on Monday trading session. Hence, traders must not rush to buy NIFTY near 17425-450 level as there are high chances that NIFTY will retest the vital level of 17350 during tomorrow’s session.
If 17350 is hold on closing basis then there are high chances that NIFTY would move towards 17500-17625.
But if Index fails to hold 17345 then the possibility of index showing 17200-17000 in upcoming sessions can’t be ruled out.
For tomorrow, Buyers must take a chance near 17350 for a target of 17500-550. SL may be put below 17263 on closing basis.
As the resistance near 17625 is observed, Sellers may take their chances in the range of 17600-625 for a target of 17550-500. SL may be put above 17700 on closing basis.
Sectoral View:
Weekly Picks:
1. BANK OF BARODA
BUY IN THE RANGE OF 120-124
TARGET 143
SL 110
Potential Upside 18%
Duration: 28 trading session
2. ROSSARI BIOTECH
BUY IN THE RANGE OF 976-980
TARGET 1136
SL 950
Potential Upside 16%
Duration: 28 trading session
The rangebound trade continued during the session where the lower range is 17500 and upper is 17700.
Missing any vital cue, Index seems to be reluctant to break/breach the range on either side.
METAL and IT offered support to the Index while profit booking was observed in BANK.
Index closed at 17558.90 with a marginal gain of 0.21%, leaving lesser scope to discuss the action under this segment.
Technical View : (Daily Chart)
NIFTY has made a small Bearish candle which has been formed after one Bearish Engulfing candle and technically be considered as a confirmation candle for further fall.
NIFTY is moving above EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which can be interpreted as the short-term trend is in the positive territory and it is intact.
RSI has reclaimed the 60 Level which may be interpreted as the built-up of bullish momentum in the Index.
Support and Resistance : Daily Chart
17425-17345 will work as support levels for NIFTY. If Index slips, 17200 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 17625-17700.
View for Traders:
As the Global cues are negative and there is not much strength shown on charts there are high chances that NIFTY will retest 17350 level during tomorrow’s session.
As we had discussed in the last post that 17500 is quite vital as if it is breached then there are high chances that NIFTY will retest 17345-200 level. On Friday evening, the global cues have signalled that NIFTY will open gap-down on Monday trading session. Hence, traders must not rush to buy NIFTY near 17425-450 level as there are high chances that NIFTY will retest the vital level of 17350 during tomorrow’s session.
If 17350 is hold on closing basis then there are high chances that NIFTY would move towards 17500-17625.
But if Index fails to hold 17345 then the possibility of index showing 17200-17000 in upcoming sessions can’t be ruled out.
For tomorrow, Buyers must take a chance near 17350 for a target of 17500-550. SL may be put below 17263 on closing basis.
As the resistance near 17625 is observed, Sellers may take their chances in the range of 17600-625 for a target of 17550-500. SL may be put above 17700 on closing basis.
Sectoral View:
Weekly Picks:
1. BANK OF BARODA
BUY IN THE RANGE OF 120-124
TARGET 143
SL 110
Potential Upside 18%
Duration: 28 trading session
2. ROSSARI BIOTECH
BUY IN THE RANGE OF 976-980
TARGET 1136
SL 950
Potential Upside 16%
Duration: 28 trading session