Yesterday, Nifty made a 4-month high however couldn’t sustain at the upper levels. Zomato shares jump up to 20%. After its first quarter results, Zomato stock showed significant gains on Tuesday amid slight gains in Sensex and Nifty. Today the company’s stock rose by 20% to Rs 55.55.
Domestic stock markets closed flat on Tuesday amid sluggish signals from the global market. The market was supported by buying in Power and PSU banks stocks. However, selling in realty stocks put pressure on the market. At the end of the trading session, Sensex climbed 21 points to close at 58,136. On the other hand, the Nifty closed at the level of 17,345 with a gain of 5 points.
Now, let’s have a look at Today’s Major Support & Resistance of Nifty and Bank Nifty
Nifty slipped early in the day but managed to close marginally positive at 16345.45. Nifty is in the late stages of this move and momentum is slowing down so it calls for some caution. However, it can still extend to the trendline of highs close to 17800.
On the Hourly Chart, we are trading outside the channel. If the intraday support zone of 17240 – 17215 is broken then Nifty can test the 17000 level.
On the upside, if it breaks and sustains above today’s high of 17390.15 then it can test 17500.
The 20-hour average which is currently at 17260 can also be used as a trailing support. We are starting to see a negative divergence on the hourly RSI.
Bank Nifty closed above the 38000 mark for the first time in this rally. Next level on the upside is the swing high of April at 38765.
Momentum remains in buy mode on the daily chart. Similar to Nifty, it also calls for some caution as we are in the late stages of the rally.
Bank Nifty is trading above the channel marginally. It has developed a negative divergence with RSI on the hourly chart which prompts caution.
If the 20-hour average at 37762 breaks on an hourly closing basis then it indicates weakness and it can then fall further to 37300.
On the upside, if it breaks and sustains above today’s high of 38179.85 then it can test 38300.
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