US markets witnessed strong selling pressure towards the end of the session, with the DJIA index declining nearly 600pts from the days high in the last hour of the day
Not much of follow through selling is seen in Asia thus far, with regional indices trading on a flat to slightly positive note
Nifty is expected to open flat to marginally in green, and it will interesting to see how the market behaves post its open
One positive development is that Nifty broke the sequence of lower high yesterday as it managed to rise and close above the previous swing high of 11618, which is a positive development
However, with yesterday’s fall across the Wall Street, sentiment could remain nervous during the day
Also, it must be kept in mind that Nifty is now trading near the recent peaks and is right at the trend line resistance (11705) connecting the 20-Jan high and 31-Aug high
For the day, if Nifty fails to sustains above yesterday’s high of 11681, we could see a bit of intraday pullback in the index
Support and Trend for headline indices:
- Nifty Support: 11659/11579
- Nifty Resistance: 11681/11705/11794
- Bank Nifty Support: 22558/22394
- Bank Nifty Resistance: 23100/23388
- Nifty Short-term trend: Positive
- Nifty Intraday trend: Neutral
- Bank Nifty Short-term trend: Positive
- Bank Nifty Intraday trend: Neutral
Note: All the levels mentioned above are based on Spot index levels