So far, the week has been challenging for the bulls as the domestic market remained volatile in the absence of any conclusive triggers.
The benchmark index Nifty remained under pressure on Monday to retest 12,000-mark on the downside. However, it recovered sharply in the next couple of sessions to clear the previous week’s high.
At this juncture, Nifty is trading with a gain of 0.63 percent. Nifty Bank index has underperformed Nifty with a change of 0.09 percent so far during the week.
The ongoing pullback in Nifty has taken a halt near 12,230 mark, which is exactly the 78.6 percent Fibonacci retracement level of the correction from 12,389 to 11,615.
From there, we witnessed some selling during Wednesday’s session. On the weekly chart, Nifty still has a lower bottom formation after August 2019.
Even the Nifty Bank index has been an underperformer since the last few sessions. Thus, we are of the opinion that the ongoing upward move is just a pullback rally of the fall.
Yet again, the higher levels like 12,200–12,300 could be used to exit longs or create short positions.
On the downside, the intermediate support is placed at 12,100. A breach of the same in the coming week could bring the bears back in action. In case of further upside, 12,300–12,350 could be strong resistance for the coming week.