The benchmark indices eked out some gains in late trade on Monday, but the Nifty is still below the key 23,000 level. Most analysts have placed the support zone near the 22,700 mark on the Nifty and think that the selling may stop only if the Nifty 50 jumps above 23,150-23,200 decisively.
According to Akshay Chinchalkar, Head of Research at Axis Securities, the 22,700-22,800 is an important support level tested yesterday. “This was the fourth time the zone marked an upside reversal, so it will continue to matter. Resistance for the day spans the 23,040-23,140 area,” added Akshay.
Immediate support is seen at 22,800, and if the index fails to hold above this level, further downside toward 22,600 and 22,400 is possible, said Mandar Bhojane, Research Analyst at Choice Broking. While talking regarding the upside, he added that the levels of 23,000 and 23,200 are key resistance levels. If the Nifty 50 is able to close strongly above 23,200 then it will be a signal of a bullish reversal.
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Taking a similar approach, Rupak De, Senior Technical Analyst with LKP Securities said that the Nifty 50 is in sell-on-rise mode until it decisively jumps the 23,150 mark on closing. “On the downside, the support is placed at 22,800,” added Rupak De.
“We are of the view that as long as the market is trading above 22,800, the pullback formation is likely to continue,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. On the higher side, the Nifty 50 could move up to 23,000. Further upside may also continue, which could lift the benchmark to 23,075.
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