Nifty gapped higher for the day but it closed at the low of the day giving us a red candle. There was little vertical movement in Nifty during the day. Nifty has now moved above the previous swing low. A breakout below the previous swing low has failed. What we can now expect is a very volatile sideways movement between 18000-17000 for some more time.
Major support in Nifty is at 17200-17100, any short-term decline to 17200-17100 is a buying level for Nifty. On the upside, Nifty has major resistance at 17550-17600. There should be selling pressure at this level. Expect Nifty to be very volatile in the next couple of days.
Bank Nifty saw a bit of a decline from the highs and the price action shows a bearish shooting star pattern BNF shows selling pressure from the resistance at the Gap area between 39200-39400. Index could get vulnerable to selling pressure intensifying if it starts to trade below 39100. Below 39100 it has support at 38750. A drop to 38750 will be a safe buying area. On the upside, a break above 39600 will mean a rally to 40100-40500.