Technical Insights: Nifty Media index bounces back from crucial support level

Indian major indices have turned indecisive with the ongoing downfall in the Banks and Metals keeping other sectoral indices marginally up. Amongst the other indices, Nifty Media is at the forefront of positive move with 1 per cent gains.

ZEEL which accounts for 48.6 per cent of the index surge of nearly 1.5 per cent from the previous close. Even TV18 Broadcast which holds 6.4 per cent weightage in the index rose 3 per cent . However, due to overall weakness in the markets, even media stocks refrained from gaining ground.

Nifty Media Index has taken a major support at 3215-3220 levels which is its multiple resistance turned support level. The said level also acts as its Head & Shoulders neckline level. The level of 3215 also acts as its 200 days EMA support level. On the weekly time frame, the said level range acts as 61.8 per cent retracement level of the prior upward rally.

The index has been making lower tops and lower bottoms since January 16, 2018 which was at its all-time high level (3676). Today’s bounce back in the index 14-period RSI positive crossover and justifiable volumes. However, oscillators trailing near 40 do not suggest any upside momentum for now. Once the crucial support level is breached on the downside the index may see 1,500 points downside in the medium term.