Nifty likely to consolidate with buy-on-dip structure: Santosh Meena
Santosh Meena, Head of Research, Swastika Investmart tells ETMarkets.
As long as the India VIX remains below its 200-DMA at the 13 level, it's likely that our market will consolidate with a 'buy on dip' structure. Only a definitive breakthrough above this level (13) could potentially trigger selling in the Indian market, he adds.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitThe October series opening was a mixed bag with Nifty up 0.66% while nearly flat Bank Nifty. What is the outlook for this week?
Nifty is currently rebounding from the 19,333 level following a significant correction. However, the true test lies in breaking above the 20-day moving average (20-DMA) at 19,800, which also coincides with a high open interest area. Only when Nifty surpasses 19,800 can we anticipate the end of this correction, with Nifty potentially heading towards the 20,000–20,200 zone.
On the downside, the 19,300-19,250 level represents a critical demand zone. A breach below this range may extend the correction towards the 19,000 and 18,800 levels. Therefore, the range of 19,300-19,800 should be closely monitored as it currently defines the trading range.
In the case of the Bank Nifty, it's currently seeking support in the 44,000-43,700 range. Conversely, the 44,800-45,000 zone poses a significant resistance, marked by a cluster of the 20-day and 50-day moving averages (20-DMA and 50-DMA). A breakthrough above 45,000 could trigger short-covering and potentially drive a rally towards the 45,400-45,600 zone. However, failure to breach this resistance may increase the risk of renewed
