According to Stewart & Mackertich, resistances for Nifty is at 9119, 9180 and 9220.
Stewart & Mackertich’s Market Report:
Nifty’s inability to rise above the double top resistance around 8980 may come to an end with BJP winning clear majority in the UP assembly elections. Taking SGX Nifty cues Nifty is likely open huge gap up. Immediate resistance is placed around 9119, Nifty March’15 all time high. 9180 and 9220 are the next resistances. Downside supports are placed around 9000 and 8970.
Previous Friday, Nifty ended with a minor gain of 0.08 percent at 8934.55 and ended the session with a spinning top candle on daily chart just below the previous double top resistance. On weekly basis, Nifty ended up 0.42 percent at 8934.55. It started the week around 8915 mark and went up to the previous double top resistance zone around 8980 followed by sell off to end the week at 8934.55.
Considering Nifty multiple time frames and overall chart pattern that shows, challenging its all-time high 9119 may lead to a structural change to its long term chart. Upside resistances are placed around 9180 and 9220. However, from technical perspective, Nifty daily chart is extremely over bought. In such scenario, we prefer selective cement and infrastructure stocks.
Previous Friday, Bank Nifty closed at 20727.55 (up 0.03 percent). Upside resistances are placed around 21050 and 21400. 20900 is the immediate support, next one is placed around 20700.
Nifty crucial supports & resistances for the day:
Supports: 9000, 8970
Resistances: 9119, 9180, 9220
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