Coronavirus fear continued on D- Street. Bulls gave a tough fight to bears but lost the battle. Nifty started the day from 11351 made a high of 11356 and came down to 11082 & closed the day above 11250 at 11251 down by 50 points. Mounting coronavirus cases, foreign institutional investors exodus, RBI playing the waiting game to provide stimulus has prompted investors to exit the market. Volatility to continue in coming sessions and the strength is possible only if the index closes decisively above 11400 levels, the upper end of consolidation range. Nifty appears to be on a consolidation mode as it almost revisited recent low of 11,036 levels before smartly recoiling. As of now, it appears that index may spend some time with a consolidation in the zone of 11400– 11,036 levels before witnessing a clear cut directional move. Near term strength in the index can be expected on a close above 11400 levels and in that scenario, it can extend to 11475. On the downside, the index needs to protect the ascending trendline, which is in progress from the October 2018 lows of 10,004, whose support for next trading session is placed around 11000 levels. As the index bounced back on two occasions in the last 3 days after testing the said trendline, breach of this on closing basis can open up bigger downsides for the index. For time being, traders should remain neutral for couple of sessions, and index long positions if any shall be squared off on a close below 11100.
Bank Nifty continued to witness strong selling pressure, falling 523 points to close at 28653 and formed a large bearish candle on daily charts. 29000 is likely to act as resistance on recoveries and only a close above 29000 zone will trigger a phase of recovery for the index. Near term support is placed at 28000 zone on the downside. Fresh positional short selling should be avoided at this juncture as the index is in oversold territory. Historically 100 EMA region on the weekly has acted as strong support zone for the Bank Nifty which is placed currently at 28340 , then 28100 levels."
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Resistance: 11430, 11500
Support: 11100, 11000
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