Tech View :: Key levels to watch on Nifty, Bank Nifty
On the daily charts, we can observe that the Nifty has held on the 40-day average which was placed at 21,234. Going ahead, we expect Nifty to face resistance in zone 21,500 – 21,520 where the key hourly moving averages are placed.
Traders should look for signs of weakness around the resistance zone before initiating shorts as there is a possibility of a deeper retracement till 21,780 – 21,800 where the hourly upper Bollinger band is placed.
The hourly momentum indicator has triggered a positive crossover which is a buy signal. Thus, price and momentum indicator are providing divergent signals which can lead to high intraday volatility.
On the downside, 21,250 – 21,220 shall act as a crucial support zone from short term perspective while 21,500 – 21,520 is the immediate hurdle zone from short term perspective.
Bank Nifty
We expect the consolidation to continue going ahead in the range 44,500 – 45,750. Minor degree pullback towards 45,460 – 45,810 should be used as a selling opportunity. On the downside, we expect the Bank Nifty to drift towards 44,500 – 44,400 from short term perspective.
Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
Comment :: ‘Positive sentiment was reinforced after PBOC’s 0.5% cut in reserve ratio’
The sentiment was reinforced by the PBOC’s 0.5% cut in reserve ratio to boost growth and financial liquidity.
However, overall sentiment is muted as concerns persist on FIIs selling due to premium valuations in India and below expectation Q3 earnings so far.
Views by: Vinod Nair, Head of Research, Geojit Financial Services
Comment :: ‘Traders should continue with a stock-specific approach’
Views by: Ajit Mishra, SVP – Technical Research, Religare Broking