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Pre- Market Commentary

Nifty

CMP: 23,431.50

Index on the daily chart formed a third consecutive sizable bearish candle with a lower high and a lower low and a bearish gap above its head (23,635-23,571) signaling continuation of the corrective decline with the Nifty closing below the July low of 23,606.

Immediate bias in the index continues to remain down and only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend.

Index to extend the last 1-month decline towards the 23,300-23,200 levels in the coming sessions being the 80% retracement of the entire previous up move 23,070-24,774

Pullback attempt from the current oversold territory will face immediate resistance at Wednesday's gap area of 23,650. While stiff resistance is placed around 23,800-24,000 levels being the recent breakdown area and 20 days EMA. Previous support area is likely to reverse its role and act as resistance in short term.

 Intraday Levels for Nifty

Resistance: 23,500 and 23,610
Support: 23,300 and 23,210

Bank Nifty

CMP: 56,295.55

Bank Nifty on the daily chart formed a third consecutive sizable bearish candle with a lower high and a lower low signaling continuation of the corrective decline with the Bank Nifty closing below the 56,500 levels.

Index is currently placed at the lower band of the last 10-week range 56,000-58,700. A weakness below 56,000 levels will signal extension of the corrective decline towards 55,300 and 54,800 levels in the coming weeks. 

Immediate bias in the index continues to remain down and only a formation of higher high and higher low on a sustained basis in the daily chart will signal a pause in the current down trend.

While sustaining above 56,000 levels on a closing basis will signal continuation of the last 10 weeks consolidation.

Intraday Levels for Bank Nifty

 Resistance: 56,500 and 56,730
Support: 55,910 and 55,700

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