Nifty continued to grind in a narrow trading band as indices struggled for direction. The Double Top formation and Doji candlestick pattern formation on the weekly chart continue to act as pain points.
The current weakness is likely to get extended further only if the weekly Doji pattern’s low of 11559 is broken on a closing basis, which is crucial support. While on the upside, 11760 is an important resistance.
On the other hand, Bank Nifty which had broken below its crucial psychological support of 30000 has once again reclaimed and also managed to close above the same.
This is a positive development for the index and is likely to get extended towards its immediate resistance zone of 30500 levels. Going forward, the 29700 levels is an important support.
The Nifty Auto index is gaining traction and has also broken out from a falling channel pattern. We expect the auto stocks to outperform in the coming weeks.
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