Nifty has had quite a turbulent day. It opened weak and looked like it would go down further, but, it started its climb back higher. There was a swift move towards the upside with Nifty climbing as much as 186 points higher. There was pretty much no stopping Nifty at a point. Then, as the markets were approaching day’s close, Nifty stood in front of resistance at 11300 and started moving lower. It quickly lost over 100 points before closing the day at 11222 with gains of 74 points or 0.67%.
Let’s talk about the chart technicals. Nifty has taken support at the 11100-11150 range and bounced higher. It is important to note that, it has bounced off a previous pivot which has acted as support in this case. Nifty has put in a nothing candle indicating we might be headed towards price consolidation for the next few days. If this happens, it would indicate bears have a stronger hand compared to bulls.
For tomorrow, we can expect Nifty to either have range-bound. There is potential upside only if it is able to clear today’s highs of 11300, where some stiff resistance lies currently. If it is able to clear 11300, we may see the Nifty reclaim 11550.
It is important to note that, with the results for General Elections around the corner, markets are bound to behave irrationally. Starting next Monday, we will see Exit Polls come out and volatility is expected to be high. The turbulent times are going to continue.
Support Resistance Summary:
Nifty Support: 11100
Nifty Resistance: 11300 & 11550