Well , continuing after a weeks gap , after quite noise reduction . Nifty & Bank nifty tested /taken lower end & higher end of support / resistances.
Weekly & monthly charts of both indices , indicates that, the rally going on is , may be a pull back rally, Indices , either consolidate/ flat or once again retest the lower supports till the state election results,
On daily chart trending phase turned in to trading phase,Reliance chart is an example, while mkt was up , reliance was down , while mkt was going down , reliance was up . For Reliance support being 920/ 917 /904. For HDFC Bank support being 1838 / 1834 / 1829 / resistance being 1843
For nifty 10287 needs to be crossed , to negate pull back . Support being 10203 /10225 Resistance being 10290 / 10308 / 10387
Bank nifty needs to be close above 25430 , to negate pull back. resistance being 25355 / 25375 / 25455 / and lower level support being 24850.
Rally on CNXCONS seems to be continuation rally , there seems to be breakout on FMCG index , Pharma index seems to be bottoming out , buying on correction will reward
Finally disclosure is that , the above writings are chart observations not recommendations .
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11-12-2017
Today’s gap up opening & thereafter not much action , even after nifty closed above desired level( BN not closed above desired level to negate pull back rally) and decrease in Future / spot difference is a kind of pause in the rally, Divergences between daily & weekly / monthly , divergence between reliance & nifty is a bit of trouble, & Also there is a dull activity in DII/ FPI action.
Indices CNXCONS, FMCG & Pharma done well & continue to do so.and may be before the event market is interested in defensive sector. weakest index is Metal index , & may continue the under performance.
Tomorrows market action seems to be important one, unless there is a gap down opening.
If correlation between Nifty & Currency is true , according to Zerodha Varsity , bought USDINR future to check. & let me see what happens.
Support for nifty being 10257 / 10235 / 10219 / & resistance being 10334 / 10387
For BN support being 25388 -384 / 25334 / 25310 / & resistance being 25443 / 25455 / 25484 / 25500
Reliance closed below its support level of 917, support being 911 / 905-4 / 898
HDFC Bank support being 1845 / 1838 / 1834 resistance being 1847 / 1852 / 1857