Nifty started the day on a higher note and traded with a positive bias throughout the day led by the banking stocks and heavyweight Reliance Industries. The benchmark index ended the day above 17100 with gains of seven-tenths of a per cent.
Our markets witnessed some positive momentum in Tuesday’s session as the banking stocks saw a pullback move and the heavyweight RIL too rallied over 3 per cent. However, the gains were limited due to the continuation of underperformance from IT stocks. Nifty has traded within a range in the last four sessions near its crucial support range of 16800. Around this level, multiple supports such as 100 per cent extension of the previous correction, weekly ‘89 EMA’ and swing low support of September 2022 are seen.
The market is now attempting an up move from this range, but it is yet to take out its near-term hurdle which is in the range of 17145-17255. FII’s have record short positions with a long Short Ratio in single digits indicating their bearish stance. However, their positions are short heavy and it will be crucial to see if they start covering shorts anytime soon. All eyes would be on the outcome of the Fed meeting on Wednesday which could be the trigger for the next directional move.
The immediate support for Nifty is placed in the range of 16800-16900 while resistance is seen in the range of 17145-17225. A breakout from this range would lead to the next directional move and hence, traders should keep a close watch on the above-mentioned levels and the data.
The author is Lead Research, 5paisa.com
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