Indian benchmark indices closed higher for the second consecutive session despite volatility. On June 6, Nifty Index exhibited strength after a gap-up opening, concluding the session at 22,821.40 and forming a green doji candle. The broader market outperformed, with the NSE Mid-Cap 100 and NSE Small-Cap 250 indices increasing by 2.24 percent and 3.25 percent, respectively. Additionally, the volatility index (India VIX) declined by 11.04 percent, reaching 16.80.
Nifty
"Option data suggests a broader trading range between 22,200 and 23,500 zones, with an immediate range between 22,500 and 23,100 levels. It formed a small-bodied bullish candle on the daily timeframe with a longer lower shadow and has started to form higher lows over the last two sessions," said Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Broking & Distribution, MOFSL.
According to Taparia, this indicates that declines are being bought, while on a weekly scale, it is forming a big long lower shadow, indicating volatile swings with a tug of war between Bulls and Bears.
"Now it has to hold above 22,750 zones for an upside move towards 22,950 and then 23,100 zones, whereas supports are placed at 22,650 and then 22,450 zones," added Taparia.
According to Prabhudas Lilladher, "The index has ended near the previous crucial resistance zone of 22,800 levels and would need to sustain above the significant 50EMA level of 22,450 zone to maintain the positive bias."
Bank Nifty
Bank Nifty traded volatilely after a gap-up opening yesterday, forming a doji candle on the daily chart. The index managed to close above 49,200 levels, signaling strength. "On the lower side, the index has strong support near 48,700 levels, which is also near its short-term (20 Day) EMA levels. On the higher side, Bank Nifty faces minor resistance in the range of 49,500-49,650 levels," said Deven Mehta, Research Analyst.
"Once the index manages to close above this resistance range, it has the potential to move towards the target of 50,000 levels," added Mehta.
Prabhudas Lilladher highlighted that BankNifty is witnessing a decent bounce back from the 200-period MA zone of 46,200 levels, having arrived near the previous resistance zone of 49,700 levels. "It would need to sustain above the important 50EMA level of 48,200 zone to maintain a positive bias. The support for the day is seen at 74,400/22,600 levels, while the resistance is seen at 75,700/23,000 levels. BankNifty would have the daily range of 48,600-50,000 levels," said the brokerage house.
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