A
volatile trading session ended on flat note, bears taking a breather after the
recent fall. After the initial uptick, the indices failed to hold the gains and
started drifting lower as the session progressed. However, a sharp surge in the
select banking majors, thanks to positive earnings by the ICICI Bank, not only
capped the downside but also helped the index to pare the losses. Consequently,
the Nifty closed at 18125 levels. Nifty opened with an upward gap and extended
its selling pressure in the first half of the session. In the latter half, we saw some buying
interest at lower levels forming a long lower shadow on the daily chart. The
Nifty closed at 18125 with a gain of 10 points (0.06%), while the Sensex gained
145 points (0.24%).
The next
higher levels to be watched are around 18300 levels. Any sustainable move above
18250 levels may cause momentum towards 18300-18500 levels. On the
downside, any violation of an intraday support zone of 18100 levels may cause
profit booking towards 18000-17800 levels. The daily strength indicator RSI has
eased off from the overbought zone indicating profit booking at higher levels. We
expect the banking pack to remain in focus as Axis Bank and Kotak Bank will
report their quarterly results on 26 oct 2021. On the index front, Nifty should
hold 18000 levels for any rebound else profit taking would resume. Needless to
say, the scheduled monthly f&o expiry will keep the choppiness high across
the board. Amid all, participants should continue with a cautious approach
until we see some concrete sign of trend resumption.
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Resistance: 18250, 18350, 18450
Support: 18150, 18050, 17950
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