Market Levels to Track

JC Parets
May 12, 2022

Global markets have been in a mess for a while now. For some time there, India was displaying resilience when it came to the broader market indices. But that has changed over the past few days.

We have seen a selloff come through in the market and it is time to revisit the levels that could be crucial going forward.

The Indian market had been resilient versus its global contemporaries on various parameters including the trend, bread internals and sentiment indicators.

This advantage seems to have gotten lost over the last few days, with all the above mentioned parameters now signalling otherwise.

Let's take a look at our market universe Nifty 500 and identify the levels that will play a crucial role as this trend progresses.

Nifty 500 is currently trading close to its support zone near 13,600. As you can see this level has gained some significance over the past few months with the index either halting or bouncing off of it a few times. A breach of this level can drag the price back towards the 2021 highs close to 12,660.

The indicator too is in bearish momentum territory. A close below 13,600 would open up the target of 12,600.

Click on the chart to zoom in.

The next index we will take a look at is Nifty 50.

Nifty 50 has been displaying more strength than others.  The trend is currently sideways with the price moving in a range. The other indices across the globe have been making lower highs and lower lows. The next level we're tracking are the 2021 highs. This comes in close to 15,550. This is the level to watch out for next. Bigger troubles lie ahead if 15,550 is breached!

Nifty Mid-Cap 100 is just about hovering close to its support level. A breach of 26,550 would confirm the lower highs lower lows trend. In the event that the support is breached, the next level to track would be 24,750. Nifty Midcaps have performed relatively better. Notice that the price is still trading above 2021 highs.

Nifty Small Cap-100 as per usual have been the first to turn away from the resistance. Small Caps are usually the last ones to join the part and the first ones to leave! The market has been quite volatile and small caps can see the direct impact of that. The price is currently trading below the 2018 highs. That is a big sign of a risk-off environment.

A breach of 8,650 could take the price lower towards 7,700.

These are the levels that we are tracking in the current market setup. The indices are trading at crucial levels. Indian indices are moving in a sideways range. A breach of these levels would change the trend. But on the lower side.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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