Nifty Pivot 25,260; M&M, IndiGo Lead Gainers

Pre-open cues are marginally positive, with GIFT Nifty around 45 points higher, and Brent crude has stabilised in the $90 to $92 zone. Nifty opened with a gap-up on Wednesday and tested the 25,340 resistance. It made a high of 25,425 but could not sustain it. The index had been in an overbought zone, and a corrective move followed. It slipped through the day and ended near 25,120. The 25,255-25,260 zone, is now the pivot. On the 30-minute chart, RSI has cooled to about 54 and negative divergence has appeared after the continuous up move, so another round of profit booking is possible. Resistance levels are 25,260, 25,425 and 25,586, and supports are 25,090 and 24,920. Consolidation looks likely, with 25,425 and 25,090 as the deciding range. A break on either side would shape the next move. Among the top gainers in yesterday’s session were M&M , up 5.30%, and IndiGo, up 4.33%, with IndiGo helped by the fall in crude. Both are worth observing today. The first half-hour of trade will be important. After a sharp rally, a failed gap-up often leads to consolidation; the pivot level and RSI divergence help judge whether the move pauses or continues. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.