Yesterday, NIFTY opened on a positive note and started the session above the 23,000 mark. The index tested 23,100 in early trade but failed to sustain at higher levels. After making a high of 23,120, it witnessed a sharp decline. Selling pressure intensified during the afternoon session when NIFTY slipped below 22,900. The index subsequently took support near 22,650 and eventually closed just above 22,800.
NIFTY has slipped below the 20-DEMA, which is placed near 22,885, and closed just above the 10-DEMA, placed near 22,800. Therefore, we should remain cautious. If NIFTY breaks below 22,650, it could witness further weakness and test the 22,300 level.
On the upside, the 23,000–23,100 zone will act as an important resistance area. Therefore, fresh long positions should be considered only on a decisive breakout above 23,100.
| Open | 23016 |
| High | 23120 |
| Low | 22649 |
| Close | 22811 |
| S 1 | 22600 |
| S 2 | 22389 |
| R 1 | 23071 |
| R 2 | 23331 |
| Action | SL | TGT |
|---|---|---|
| Buy above 23120 | 23024 | 23300 |
| Sell below 22650 | 22751 | 22450 |