Yesterday, NIFTY opened on a positive note and tested the 22,600 level in early trade. However, it failed to sustain at higher levels and witnessed profit booking. During the afternoon session, the index took support near 22,400 and recovered smartly, eventually closing just above 22,550.
NIFTY has witnessed some recovery from lower levels, but there is still no clear sign of a reversal on the charts. If NIFTY sustains above 22,600, we may see some bounce-back trade, in which case the index could test the 10-DEMA, which is placed near 22,800.
On the downside, the 22,200–22,150 zone will act as an important support area. Therefore, long positions should be maintained with a protective stop-loss below 22,150.
| Open | 22532 |
| High | 22621 |
| Low | 22397 |
| Close | 22555 |
| S 1 | 22427 |
| S 2 | 22300 |
| R 1 | 22652 |
| R 2 | 22749 |
| Action | SL | TGT |
|---|---|---|
| Buy above 22655 | 22550 | 22850 |
| Sell below 22290 | 22400 | 22100 |