Nifty faces key resistance in 18,100-18,150

Mumbai: Nifty ends up for third consecutive day but faces key resistance in the area of 18,100 – 18,150, a lower high made in November 2021. The current strength of the bull market depends a lot on how price action is in the zone of 18,100 – 18,150 and how momentum is at these levels. Any failure or loss in momentum can signal a distribution and will let bears take control over for a short term.

The support for benchmark is at multiple levels as defined by its short and long term MA. As per OI, 18,000 and 17,900 can act as support for the short term while 18,200 needs to be taken out, until then, we may see this broader range being played out.

Bank Nifty is up for ninth consecutive day on closing basis indicating the strong bullish momentum. The resistance is at 38,856, its 0.618 retracement of recent fall from ATH while support is seen at 37,930 and 37,350.

Technically, RSI for both key indices is way above 60 indicating the underlying strength while Trend indicator MACD is also showing upside direction.

(The author is technical analyst at Finversify)