Nifty Bounces From 22,200; SBI Life in Focus
Nifty slid through its supports in Friday's session to the strong 22,200 zone, which also coincides with the weekly channel support, before a late recovery took it to settle near 22,445. A doji at the lows hints that selling pressure may be easing. RSI at 39.67 is turning up from oversold territory and shows a positive divergence against price, which supported the bounce.
Resistance: 22,614, then 22,809. Support: 22,226 (line in the sand), then 22,024.
GIFT Nifty trades about 100 points higher as of this writing, so a gap-up open looks likely. With the doji and the RSI divergence in place, the index could test 22,614 initially and 22,809 on further strength, as long as 22,200 holds. A weekly close below 22,200 would confirm a break below the 200-day moving average on the weekly chart, while a hold would read as a fake breakdown, so this week's close matters. Global cues are supportive, with Friday's weaker US payrolls lowering the odds of an October Fed hike.
