The index has come into the major resistance zone between 6759 and 6800. Now, for the bulls to take it decisively beyond the grip of the bears, it should stay above 6789 through 6808 range to signal real strength. Its end-of day chart is quite telling—liquidity driven markets tend to ignore all other cues; however, supply pressure, at the above range between 6759 and 6800, could pose a challenge for the bulls. Unless the zone between 6731 and 6712 is violated decisively bulls would always retain their ability to post a bounce back.
- Most critical levels of the day: 6779 – 6808 on the upside <> 6731 – 6712 on the downside
- Strong support: 6674 – 6663 – 6649
- Major support: 6600 – 6558
- Strong resistance: 6779 – 6808
- Major resistance: 6846 – 6856
A healthy correction is going on here; once the correction is though we can expect the Bank Nifty to test the earlier high around the 13400-mark. Anyway, till such time the eventual breakout does take place, the narrow range bound market activity goes on. While Bank bulls are quite keen to get past the 13000-mark, dealing with the supply pressure around 12614 through 12700 needs to be overcome.
- Most critical levels of the day: 12614 – 12620
- Strong resistance: 12797 – 12877
- Major resistance: 12797 – 12869
- Strong support: 12423 – 12354
- Major support: 12252 - 12204