Nifty s short-term trend is down and more weakness in the short term is expected. The next important support zone to be watched is around 20,950-20,850 levels, which are coinciding with supports of the previous up gap of Dec 14, swing low of Dec 21, and also 38.2% Fibonacci retracement of Oct 23 bottom to Jan 24 top
The short-term trend of Nifty remains choppy. Having faced weakness after a small rise on Saturday signalled a weak bias for the market ahead. At the higher levels, the market could encounter strong overhead resistance around 21,750-21,850 levels and on the downside it could find support around 21,300 levels in the near term, said Nagaraj Shetti of HDFC Securities.
Immediate support for the Nifty is at 21,550 levels, said Nagaraj Shetti of HDFC Securities. As long as the sharp opening downside gap of Wednesday remains open at 21,970, there is a higher probability of a sell-on rise in the market for the short term.
Having declined sharply, there is a possibility of a pullback rally in the short term, which is expected to be a ‘sell on rise opportunity. Important resistance to be watched at 21,700-21,800 levels.
For a sustained upward movement towards 22,300, Nifty needs to decisively break above 22,150. On the downside, the immediate support is located at 21,950 levels and a clear break below this level could trigger further corrections towards the 21,800 mark.