Nifty in a narrow range with crucial resistance and support

Nifty is in a very narrow range of 130 points. On downside, there is support at 11,278 formed from Apr 30 – June 8 highs. Nifty breaking this can be seen as confirmation of break in uptrend since March 23. On upside, Nifty has been able to maintain its support at DMA10 levels. Another key signal to observe is DMA50 level, which has just touched the DMA200, a golden crossover. However Nifty has an immediate resistance at 11,408 level formed from Oct 2018-Sep 2019 line, followed by 11,537 which is formed due to gap down opening of Feb 28, 2020.

Coming week is therefore crucial to observe as Nifty remains in a very narrow range with very important support and resistance points.

- Rajesh Ramchandani