On Friday, NIFTY opened on a positive note above the 23,000 mark but failed to sustain at higher levels and witnessed profit booking in early trade. The index took support near 22,900 and subsequently resumed forming higher tops and higher bottoms on the intraday charts. It regained the 23,000 mark and tested 23,100 before eventually closing just below 23,150.
NIFTY continues to form higher tops and higher bottoms and is trading above both the 10-DEMA and 20-DEMA. Therefore, we maintain a bullish view on the index. Going forward, NIFTY could test 23,170, which corresponds to the 38.2% Fibonacci retracement level of its entire decline from 24,774 to 22,179. If the index sustains above 23,170, it could extend its recovery towards 23,477, the 50% Fibonacci retracement level.
On the downside, the 22,900–22,800 zone will act as an important support area. Therefore, long positions should be maintained with a protective stop-loss below 22,800.
| Open | 23065 |
| High | 23149 |
| Low | 22913 |
| Close | 23146 |
| S 1 | 22990 |
| S 2 | 22833 |
| R 1 | 23226 |
| R 2 | 23305 |
| Action | SL | TGT |
|---|---|---|
| Buy above 23150 | 23050 | 23350 |
| Sell below 22825 | 22906 | 22700 |