Market Update: Nifty opens flat, holds above key moving average; bank nifty gains momentum
Mumbai: Nifty opened flat on Friday in line with global cues. After an initial knee-jerk reaction, the index traded in the positive zone and settled at 22,466 levels.
From a technical perspective, the index is maintaining a strong hold above the 21-day exponential moving average (21-DEMA), which is positioned at 22,320 levels.
"As long as the index holds above the 22,320 levels, the rally could extend to 22,600. However, we are gradually approaching the previous resistance of 22,800, where the index has formed a bearish engulfing candle. Thus, traders are advised to take some profit off the table," according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
The Bank Nifty opened on a weaker note, but after initial nervousness, the index gained momentum and finally settled on a positive note at 48,116.
"Technically, the index has overcome the 21-day exponential moving average (21-DEMA) hurdle, which was placed near 48,050, indicating strength. Therefore, in the near future, Bank Nifty might test the 48,500-48,700 levels," he added.
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