Support Break Down In Nifty

As we discussed in the last article, both indexes have given negative signals on the chart and it worked well within two days.

Technical Overview Of Nifty: On this Monday, Nifty has respected their first support and today nifty has broken down this support as well. Currently, nifty is trading in a gap up zone and there are chances of bounce from this gap. However, the gap is not filled 100% so we are expecting more fall up to 12000. Also, there is immediate support of Trend-line.

There is immediate resistance around 12150. If bounce will come in Nifty then we are expecting sell on rising between a range of 12150 to 12180 i.e. supply zone. Still, we are negative on Nifty.

Nowadays the result season is going on and this impacts the market to make a volatile day. Today Axis Bank has declared its result and profit is raised by 4.5%. This percent of profit is highest in comparison to the last 22 quarters. So now Bank Nifty may open the gap up due to the Axis Bank result.

Technical Overview Of Bank Nifty: Scenario is the same here, on the first trading day of week bank nifty has sustained near Neckline support and today neckline broken by bank nifty. The bank nifty has given closing with great red candle with good volume.

There is immediate support around 30500 and 31000 is resistance.

If we see the monthly option chain of both index then there is huge call writing. That means as per the chart and options data sentiments are strongly negative.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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