Yesterday, NIFTY opened on a negative note and fell below the 22,500 mark in early trade. Thereafter, the index started forming lower tops and lower bottoms on the intraday charts. Selling pressure intensified during the afternoon session when NIFTY slipped below 22,400. The index subsequently tested the 22,200 level before eventually closing just above it.
NIFTY continues to form lower tops and lower bottoms and is struggling to sustain above the 10-DEMA, which is placed near 22,700. Therefore, we should remain cautious. If NIFTY breaks below 22,150 and sustains at lower levels, further selling pressure may emerge, potentially dragging the index towards 21,750.
On the upside, the 22,500–22,700 zone will act as an important resistance area. Therefore, fresh long positions should be considered only on a decisive breakout above 22,700.
| Open | 22599 |
| High | 22599 |
| Low | 22179 |
| Close | 22231 |
| S 1 | 22074 |
| S 2 | 21917 |
| R 1 | 22493 |
| R 2 | 22756 |
| Action | SL | TGT |
|---|---|---|
| Buy above 22500 | 22400 | 22700 |
| Sell below 22175 | 22251 | 22025 |