Market Update
Harsh Patel
Founder
The market rebound to morning levels of 25900 after steep fall in the 1st half to 25730 as small & midcaps turned oversold on Tuesday after falling -4% this week. Gift Nifty trades -25(-0.1%) lower.
Nifty Hourly Chart
Support levels: 25700-25660 Resistance levels: 25900-25950
Nifty's rebound is a corrective move in nature, re-testing the "Channel breakdown" level and reversing from the same, a bounce to 25900-25950 may invite fresh selling while on the downside 25660-25700 to act as immediate support, keeping market range bound.
Below 25660 selling may intensify 25450 level which is 50% retracement level for the recent rally. BankNifty closed below of 'Rising Wedge Breakdown" level, below 58900 it may fall up to 58000 level.
Banknifty Hourly Chart
Interest rate hike by BOJ in coming week remains a key risk factor, which may result into increasing selling pressure form FII/FPI as carry trade unwinds and equity markets sees flight of capital, which is also evident with rupee sliding, USDINR may cross 91 mark in coming days.
OI data suggests bearish undertone with PCR at 0.77 for weekly expiry, Unless 26000 is sustained on higher side or US-India Trade deal concludes with positive outcome market may remain in "Sell on Rise" mode.
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Tradzo Research
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