Uncertainties surrounding tighter monetary policy in the US and rising COVID-19 cases in China weighed on our domestic indices. Against this backdrop, the benchmark index opened the day with modest gains, and in doing so, Nifty hit the lower end of the gap range that coincided with the 20-DMA and yesterday's low, showing buying interest, and ended the day with a gain of 0, 46% at 18244. The benchmark indices broke a three-day losing streak to finish in the green with the Nifty 50 closing +0.46% and Sensex +0.45% led by strong buying in PSU banks. Some selling pressure was seen in power and real estate stocks. IndusInd Bank and JSW Steel were the top gainers while BPCL and Nestle were the top losers in Nifty 50 today. The INR is also increasing after a 4-day continuous decline. To finish, the Sensex was up 274 points to 61418 and the Nifty was up 84 points, to 18,244.20. Approximately 1587 stocks are up, 1772 stocks are down, and 140 stocks are flat. Overall, we believe Indian markets are trading in a positive trend, supported by strong corporate earnings, easing supply constraints, falling commodity prices and strong demand across sectors. Investors should use any significant decline as a good opportunity to buy into these markets. Benchmark indices broke their three-day losing streak and ended higher with Nifty at 18225-18175 . On the technical front, immediate support and resistance at Nifty 50 are 18100 and 18500 respectively. Immediate support and resistance for Bank Nifty are 42000 and 42500 respectively. The Nifty has entered a short term consolidation and the overall structure shows that the consolidation will continue for the next 1-2 weeks. Within this consolidation, the Nifty is expected to see swings in both directions. In the last few sessions it had formed the first leg on the underside and was near the 20 DMA. Consequently, the Nifty rallied again today which may lead the Nifty to the hourly upper Bollinger Band which is near 18300. Over there, the index should start to see selling pressure again. Overall, short-term consolidation is expected in the 18100-18500 range.
Resistance: 18300, 18400, 18500
Support: 18200, 18100, 18000
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