Range bound movement
was witnessed in market today. The Sensex ended a range bound session over 100
points up led by gains in auto, metals and capital goods sectors. The sensex
ended at 25,516. It touched intraday high of 25,571 and a low of 25,466 in
trade today. The Nifty closed at 7,638. It touched intraday high of 7,649
and a low of 7,618 in trade today. While the Nifty future started at 7646
made a high of 7678 and low of 7637 and closed at 7668, total 41 points was
moved by nifty future. Yes, it was a decisive day yesterday with the Nifty
posting a breakout above the 7600level. Now, it remains to be seen how it
negotiates with the supply zone between 7635 and 7670 and move further up. Once
the above supply zone is cleared with real strength then even the level of
7700, the earlier high, would not matter so much for the index or its bulls.
Indications are very clear that unless the Nifty falls below 7560 through 7540 support
area, the bulls would use all intraday dips as
buying opportunities. Above the
7700 level, the next levels to watch out for would be 7720 through 7750 resistance
zone. As of now, only a close below 7460 would tilt the scales again.In bank nifty index today, a move of a little over 110-points from yesterday’s close we would be above the most critical hurdle for the Bank Nifty it is located at 15350 as on today. The point is that the bulls should be able to take it out decisively then the Bull Run will continue. In case of any eventual profit taking, the levels between 15150 through 15100 would be a strong support, which unless decisively held by the bulls, the bank stocks and the index would both suffer. Even if the level of 15100 is broken unless the level of 15070 is also taken out, the index would not weaken so much. On the upside, though, we see the range between 15500 and 15600 is the first target once the 15350 gets broken.
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RESISTANCE:
7640, 7670, 7700
SUPPORT: 7610, 7580, 7550
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