Further impetus unlikely for the Nifty 50 until this level is breached
Jai Bala thinks the Nifty Bank Index is showing signs of exhaustion and that 44,600 and 45,500 would be key resistance levels on the upside.
The Nifty 50 Index is back in familiar territory. The lack of strength ahead of an F&O series expiration was evident on Tuesday when the index made another attempt to break above the 18,400 mark but failed to hold those levels. Tuesday was also the third instance in the last seven trading sessions where the Nifty 50 hit an intraday high above 18,400 but closed below.
Live
In case one needs to look for positives to this, there are quite a few. First, the Nifty 50 intraday high at 18,419 was the highest since the May 16 high at 18,432. The intraday low of 18,324 was well above the May 15 low of 18,287.
“The Relative Strength Index (RSI) is forming lower highs on the daily chart,” according to Ashwin Ramani of SAMCO Securities. Therefore, he advises traders to err on the side of caution as the Nifty 50 index is unlikely to gain momentum until it closes decisively above 18,400. Ramani sees a Immediate downside support for the Nifty 50 around the 18,200 levels.
cnbctv18-forexlive-benzinga
