Support Levels
- Immediate Support: 22,900-22,800
- This range has shown strong buying interest and has acted as a cushion during recent corrections.
- A break below this level could signal further downside.
- Secondary Support: 22,500
- A critical level where buyers have previously stepped in to stabilize the index.
- Breach of this level may lead to a sharper correction.
- Major Support: 22,000-21,800
- A long-term support zone coinciding with key historical lows and the 250-day Simple Moving Average (DSMA).
- Holding this level is essential to prevent a deeper market decline.
Resistance Levels
- Immediate Resistance: 23,260
- This level has capped recent upward movements and represents the nearest challenge for the bulls.
- Intermediate Resistance: 23,550
- Corresponds to the 200-day moving average, a critical technical indicator for trend reversal.
- Major Resistance: 24,000
- A psychological barrier and a level where significant selling pressure has been observed historically.
Key Observations
- 200-Day Moving Average Breach:
The Nifty 50 is currently trading below its 200-day moving average, indicating bearish sentiment in the market. - Bearish Momentum:
The index has struggled to reclaim higher resistance levels, suggesting persistent selling pressure. - Volume and RSI:
Volume is subdued, and the Relative Strength Index (RSI) is near oversold levels, indicating potential for a technical bounce.
Trading Strategy Recommendations
- For Bulls:
- Wait for a breakout above 23,260 to confirm a reversal of trend.
- Use 22,800 as a stop-loss for any long positions.
- For Bears:
- Sell on rallies near resistance levels like 23,260 or 23,550.
- Watch for breakdowns below 22,800 for short-selling opportunities.
Always combine support and resistance levels with other indicators like volume, moving averages, and global cues for a comprehensive analysis.
