The breakdown below 11,100 could trigger a further supply till 10,850. Resistance is near 11,375, a break of this level will open the gate for 10,600 in the benchmark index.
Nifty has been trading in a very narrow range since it tested the lower band of the rising channel pattern on the daily timeframe.There is not much progress in this week’s daily chart compared to its previous week’s charts.
August 12, both Nifty and Bank Nifty opened almost a percent lower and later on a constant buying support in some heavyweight stocks, pushed Nifty closer to yesterday’s close.
For the last four months, the benchmark index has been trading in a rising channel formation and within that period, prices have respected the lower band of the channel almost three times and successfully rallied higher.
In the last one month, India VIX flattened out and had been reading in a range of 26 -23 levels.
On August 11, India VIX index witnessed a breakdown of the smaller degree trendline on the daily interval and on August 12, it continued its breakdown trend and contracted by 2.41 percent, closing below 21 levels.
Market breadth remained strongly in favour of bulls. For five gainers, there were three losers.
There are expectations of a good announcement on taxation, health care, new FDI announcement and dedicated financial institution for the infrastructure funding.
We expect some consolation at the current level with time-wise correction.
The breakdown below 11,100 could trigger a further supply till 10,850. Resistance is near 11,375, a break of this level will open the gate for 10,600 on the benchmark index.
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