Nifty moved above the high, After eight successive days of falling high
NIFTY: After eight successive days of falling highs, today was the first day when the Nifty moved above the high of the previous day. Now, by itself, this may or may not mean much. It does give a message: at least for the time being, markets may be willing to pause, try for a consolidation. The 8100 line in the Nifty has taken a lot of importance. On Nov 16 and Nov 17, the Nifty closed at 8100, while on the next two days, it opened at 8100. The repeated touch of 8100, for either a close or an open, identifies this number as significant resistance. (Resistance, since the Nifty is below it). We then have the first contours of a possible trading range with support around 7950 and resistance at 8100. Intraday trades can be justified, but swing trades should ideally be taken above 8100 for a buy and below 7950 for a short sell.
BANK NIFTY: Bank Nifty had again traded narrow and choppy for the second consecutive day; seems volatility is on the downside now. Prices started with a gap up above 18650 but came lower below 18600 in initial trade and then traded choppy in a narrow range throughout the day. Index finally closed below 18550 with minor losses. On the daily charts, Bank Nifty has made a pattern of NR7 (narrowest range in last seven trading days) which is not surprising after volatile nature of the market from past couple of weeks. Prices had broken down from its support of 19000 a day before yesterday but follow through did not come so any shorting opportunity will come only below 18300. Support for the index is visible near 18000 and resistance near 19000. Any buying opportunity will come only above 19000 in the Bank Nifty. If price trades inside 18300‐19000 then avoid the index.
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