As mentioned in Friday’s commentary — a gap-down was expected in 
NIFTY, and that’s exactly what we saw.
I highlighted that the gap-down could happen below 25285 — and the market opened at 25255.
A bounce was expected near 25333 — and the bounce actually came, up to 25322.
It was clearly stated that selling should be done on bounce — and from there, the market dropped nearly 180 points from the high.
In short — the analysis played out exactly as planned.
Now, since everything is moving as per plan, it would be incorrect to assume that the market has turned bearish.
The Nifty chart is simply indicating that due to the earnings season, institutional money is rotating from one set of stocks to another.
So, this is not a downtrend or a selloff — it’s just a basic quarterly rotation which mutual funds are required to do every quarter as part of their rule-book.
Funds are being booked from run-up or overbought stocks, and re-invested into undervalued stocks — stocks that are now setting up for a fresh move and belong to stronger indices or sectors.
✅Your focus should be on spotting such stocks and sectors early.
Now, coming to Friday’s Nifty candle — it’s showing a bullish hidden divergence.
Which means — there’s a high probability of a strong bounce.
However, there’s a caution: the first one hour of the market might remain sideways or slightly bearish.
So avoid early entries — wait for a clear bounce signal.
Let’s talk about the key technical levels:
Resistance: 25225 — once crossed, the next resistance is at 25350.
Support: 25125 — if this breaks, index may fall to 25071, and further to 24955 if pressure continues
The time-wise correction seems almost complete — and next week looks promising for a solid move.
Sector-wise, IPOs, Healthcare, FMCG, and Pharma are currently showing the most strength.
Speaking of
BANKNIFTY — it has already shown the first sign of bounce by holding support at 56600. Immediate resistance is at 56900.
From today, you can start scanning for strong breakout stocks — like
HPL
That’s all for today’s commentary.
Take care. Have a profitable tomorrow.
NIFTY, and that’s exactly what we saw.I highlighted that the gap-down could happen below 25285 — and the market opened at 25255.
A bounce was expected near 25333 — and the bounce actually came, up to 25322.
It was clearly stated that selling should be done on bounce — and from there, the market dropped nearly 180 points from the high.
In short — the analysis played out exactly as planned.
Now, since everything is moving as per plan, it would be incorrect to assume that the market has turned bearish.
The Nifty chart is simply indicating that due to the earnings season, institutional money is rotating from one set of stocks to another.
So, this is not a downtrend or a selloff — it’s just a basic quarterly rotation which mutual funds are required to do every quarter as part of their rule-book.
Funds are being booked from run-up or overbought stocks, and re-invested into undervalued stocks — stocks that are now setting up for a fresh move and belong to stronger indices or sectors.
✅Your focus should be on spotting such stocks and sectors early.
Now, coming to Friday’s Nifty candle — it’s showing a bullish hidden divergence.
Which means — there’s a high probability of a strong bounce.
However, there’s a caution: the first one hour of the market might remain sideways or slightly bearish.
So avoid early entries — wait for a clear bounce signal.
Let’s talk about the key technical levels:
Resistance: 25225 — once crossed, the next resistance is at 25350.
Support: 25125 — if this breaks, index may fall to 25071, and further to 24955 if pressure continues
The time-wise correction seems almost complete — and next week looks promising for a solid move.
Sector-wise, IPOs, Healthcare, FMCG, and Pharma are currently showing the most strength.
Speaking of
BANKNIFTY — it has already shown the first sign of bounce by holding support at 56600. Immediate resistance is at 56900.From today, you can start scanning for strong breakout stocks — like
HPL That’s all for today’s commentary.
Take care. Have a profitable tomorrow.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.