Sgx Nifty the early barometer suggests a flat opening. US markets closing shows a positive bias for Indian markets. The market is likely to remain in a range-bound mode till the Gujarat election results come out which will provide a fresh trigger to the market.
We saw a decent reversal from Friday's lows giving a view of trading in a tight range. We believe the range-based trading will continue this week also with Nifty hovering in the broad range of 18100 to 18500. This consolidation near the top is good for an eventual breakout but parameters like negative divergence on daily charts are a problem.
Nifty. Buy on dips as of now. Support is placed at 18250 and resistance at 18430.
BankNifty. The range limits are 42200 and 42800. This narrow-range trading should continue today also.