For the coming week, 12,300 will act as a breakout level, and a break about could take the index towards 12,440-12,460
The Indian markets witnessed a kneejerk reaction to rising geopolitical concerns that could lead to some more consolidation. But a break below 12,100 levels could lead to further correction, Sacchitanand Uttekar, DVP – Technical (Equity) at Tradebulls Securities tells Moneycontrol in a special podcast.
If we look at the way we started the week it suggested that the market was moving in a range and 12,300 level was acting like a tough resistance.
"The market was expecting fresh highs on January 3 but it could take a while now, but consolidation is healthy and the bias is on the upside," explains Uttekar.
We expect the Nifty to eventually scale higher over 12,400, and the base which is building around 12,100 should hold for the coming week as well, he added.
However, for the coming week, 12,300 will act as a breakout level, and a break about could take the index towards 12,440-12,460. But, on the downside 12,100 will act as crucial support for the index. The built-up of positions has been strong near 12,100 strikes and also around 12,200 strikes.
The next big trigger for D-Street will be the December quarter results season which will start from the next week, and Union Budget 2020.
"Hence, markets could well absorb all the negative news and we may see a rally towards 12,400 levels," said Uttekar.
Tune in to the podcast for more.
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