07 Feb , 2024 By : Debdeep Gupta
The benchmark indices traded higher amid favorable global cues intraday on February 7. On the expiry day, Bank Nifty sees a short-covering rally. Experts predict that if the index surpasses 46,100, it could experience a short-covering rally towards 46,700-46,800.
On the other hand, support levels for the Nifty are currently identified at 21,850 and 21,700-750. On the higher side, the immediate psychological resistance for the Nifty is at the 22,000 mark, with the next resistance zone at the 22,125-22,150 levels.
Except for IT, all sectoral indices are trading in the green with metal, power, and realty up 1-2 percent.
At 11:10 am, the Sensex was down 4.05 points or 0.01 percent at 72,182.04, and the Nifty was up 12.70 points or 0.06 percent at 21,942.10.
"As long as the Nifty holds above the 21,700 mark, the ongoing rally that commenced last week is likely to persist. The Nifty has formed an inside bar pattern on its daily chart. An inside bar pattern occurs when the price trades within the high and low range of the previous day, resulting in a candle being classified as an inside day or an inside bar. Support levels for the Nifty are now identified at 21,850 and 21,700-750. On the upside, the immediate psychological resistance for the Nifty is at the 22,000 mark, with the subsequent resistance zone situated at 22,125-150," Tejas Shah, vice-president of technical research at JM Financial, said.
Bank Nifty
As per Sudeep Shah, Head of Derivative and Technical Research at SBI Securities, "The 20-Day EMA zone of 46,000-46,100 is likely to serve as resistance, while support is seen in the zone of 45,500-45,400. If 45,400 is breached, the index may test its next swing support at 45,150-45,100. Above 46,100, Bank Nifty could experience a short-covering rally towards 46,700-46,800."
"Bank Nifty PCR is at 0.64. Significant open interest buildup is seen in 45,800-46,000 calls and 45,600-45,500 puts, suggesting a range of 45,500 to 46,100 for the day," Shah said.
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