we can surely note that there has been a tweezers top formation (high being the same on last two sessions) at 6562 if that is not violated either today or anytime soon. The import of a small black body after a protracted uptrend has never been very good, it generally leads to a correction. Thus, we might have to be fairly vigilant. Secondly, FIIs being net sellers in the derivative segment too does not augur well and weak sector like realty saw last hour sharp short covering. Lastly, rising open interest from 6600-strike call option also suggests that level of 6600 is unlikely to be taken out soon while we should be wary of the Nifty breaking the critical support zone between 6500 and 6461.
- Most critical levels for the day: 6500 – 6461, its immediate support zone as well
- Strong resistance: 6549 – 6562
- Major resistance: 6589 – 6603
- Strong support: 6423 – 6398
- Major support: 6342 – 6318
the index could not sustain above 12246 even though it did go above the important level in the intraday session. Now, the formation on the end-of-day chart shows that the bank index could be in for some trouble. Of course, so long as the support levels between 11923 and 11726 get violated, the index would not really show any significant weakness. On the contrary, if it were to take out 12246 and stay above that level, we could be looking at another momentum led rally, notwithstanding some ominous technical signs on the charts. However, probability of that happening is arguably much less at current juncture.
- Most critical levels for the day: 12203 – 12246, its important resistance as well
- Immediate support: 12052 – 12017
- Strong support: 11663 – 11552
- Major support: 11403 – 11317
- Strong resistance: 12398
- Major resistance: 12473 - 1257