Last week, the 23242-23150 level in Nifty was seen as the first support on a closing basis, and 23547 as the first resistance zone. Following global markets last Monday, it started with a massive gap down at 23080. From the low of 23070 recorded at the very beginning, it later recovered to reach 23267 before closing the day at 23123. As mentioned earlier, the market often turns such fancy number closings into a turning point. The reality is that from the very next day, the market tried to sustain its upward momentum. After holding near the 23240 level for the next three days, it once again tested 23072 intraday, bounced back, and closed the week at 23623. Another close reminiscent of the first day’s closing. The news that the Iran-US conflict is reaching a settlement, and Brent crude subsequently dropping to 87, came as a relief. As pointed out earlier that the Banking and IT sectors were the ones likely to lead any kind of comeback, it was Bank Nifty that initiated a strong upward move. Bank Nifty moved from the 54000 level and closed at the 56800 level. Let us look at what to expect in the coming days.
First, let’s look at the initial resistance zones to watch out for on the upside in Nifty in the coming days. The first hurdle is to cross and close above the initial resistance zone of 23814. Above this, the resistance zones of 24090, 24284, and 24482 are very important for the bulls. If a comeback is the objective, Nifty should be able to overcome all of these and advance in the coming days. Now, let’s examine the support zones to watch out for on the downside. The first support to watch is 23449; if this does not hold on a closing basis, the next crucial level is the recently formed immediate support within the 23172-23072 range. Only if this is also lost will the possibilities for further weakness open up. As mentioned earlier, Bank Nifty is the primary index to keep an eye on. Bank Nifty, currently at the 56814 level, has been able to build a base within the 53000-54000 range. Therefore, the bulls will try to maintain this as support and attempt to move forward. In this scenario, there will be an attempt to advance at least up to the next resistance zone at the 60500-61800 levels in the coming months. Even if such a move is made, it will significantly support the Nifty.
Brent Crude lost its very crucial support of 91.15 and closed last week at 87.33. As long as it stays below 91.15, the next downward trajectory will likely be towards the subsequent support levels of 82.38 – 75.80. Both of these are now critical levels. It is also promising that the government in India has started adopting various measures to overcome the current crisis phase. We can expect more actions on a ‘war footing,’ similar to the efforts initiated in recent weeks to increase dollar deposits.
Author Information
Author & Reviewed By: Jaideep Menon
About the Author:
Jaideep Sankarankutty Menon is a market professional with over three decades of experience in financial markets, investment research, and wealth management. As part of Vasupradah Investment Advisory Services, he focuses on helping investors make informed, long-term financial decisions through research-driven investment strategies.
Disclaimer:
This article is for educational purposes only and should not be considered investment advice. Investments are subject to market risks.