Nifty Near Monthly Resistance; KPIT Tests Wedge

Nifty gained about 374 points (1.66%) yesterday, and the falling channel breakout flagged a couple of days back has played out well. The index moved past 22,740 and 22,840 and settled near 22,940, which now sits on the 22,940-22,840 cluster, an earlier resistance zone. RSI at 63.05 stays in the bullish zone after easing from higher levels. GIFT Nifty is about 100 points higher as of this writing. Resistance: 23,100 (monthly) / 23,160 / 23,320. Support: 22,780 / 22,740 / 22,470. Holding above 22,840 keeps the 23,100 monthly resistance in view, and sustaining above it could open 23,160 and 23,320. A breach of 22,840 could bring 22,780 into focus.

(daily) has been moving inside a falling wedge since June. Price rebounded from the lower line near 470-480 and is now at the upper line, around 526 against a high of 538.8. RSI at 51.33 has recovered from the oversold zone to the midline, and volume picked up on the rebound. A sustained close above the upper line would be an important development, with 570 as the next reference. On the downside, the wedge low near 470 is the key support. A falling wedge shows selling pressure narrowing; a close above the upper line with volume is what tells observers whether the pattern is resolving higher. 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.