Nifty Pivot 23,400-23,320; Reliance, Steel Lead

Pre-open cues are positive. GIFT Nifty is up around 120 points as crude eased after breaking the $109 support, touching $103.28 and trading near $104.44, which brought risk appetite back. Yesterday Nifty opened above 23,000, moved towards the inverse Head & Shoulders measured-move reference and went up to 23,360. It then consolidated between 23,200 and 23,360 and settled near 23,440. RSI at about 68 is supporting the bull case however a negative divergence is forming, so caution is warranted. For the day, the pivot cluster is 23,400-23,320, with initial support at 23,280 and then 23,130. A move below 23,280 could see the index fill the gap towards the 23,060 area. A sustained move above 23,400 would bring 23,520 and 23,590 into view.

, Tata Steel and JSW Steel were the top three Nifty 50 performers yesterday. Reliance rose over 11% after its Q2 numbers, having been on our radar with a harmonic pattern on 31 Oct. These heavyweights are worth tracking for index direction. When RSI nears overbought with negative divergence, momentum may be tiring; levels and the opening hour help judge whether the move continues or consolidates. 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.