has touched the 6700-mark and closed lower at 6696; now standing at the cross roads, the question that everybody wants to know is where is it headed? While there is likely to be some resistance at 6717 – 6720 range, the major supply zone would now be found between 6760 and 6800. Getting past 6787 at one go is going to be a tall order notwithstanding the current heady momentum. Even if we see the index moving above 6720-level without much difficulty, the range between 6760 and 6800 might bring in whole lot supply pressure to initiate a short term correction. On the downside, in case of any eventual profit taking, the range between 6654 and 6625 would be the first significant support area to watch out for.
- Most critical levels for the day: 6717 – 6720, its first resistance.
- Major supply zone for the day: 6760 – 6800.
- Next strong resistance above 6800-mark: 6848 – 6856.
- Key downside support: 6654 – 6625
- Strong support: 6592 – 6571
- Major support: 6516 – 6502
The Bank Nifty
The "have money, will buy" brigade was on rampage in PSU banking stocks the last Friday. Just because there is a one-year reprieve for implementing Basel III norms, the bank bulls got another excuse to push the stock prices further upwards when even lower prices were questionable given their current fundamentals. Anyway, in a liquidity driven rally, you don’t bring in boring stuff like valuation or for that matter any discussion on fundamentals. If the index were to stay above 12797-mark today, it is headed for further rise while if it were to fall below 12657 and stays there then the possibility of a corrective swing ushering in would loom larger.
- Most critical level on the upside: 12797
- Most critical level on the downside for today: 12657
- Strong resistance: 12797 – 12818
- Major resistance: 12959 – 13010
- Strong support: 12636 – 12540
- Major support: 12473 - 12333