Technical view: Nifty's crucial upside resistance levels at 22,720 and 22,800

The NSE Nifty 50 has remained above key bearish gaps, with the major resistance zone between 22,668 and 22,720, where the next bearish gap lies, according to analysts. Hrishikesh Yedve, a research analyst at Asit C Mehta Investment Intermediates Ltd., noted that the formation of a green candle after crossing the bearish gap indicates strength. On the upside, resistance levels at 22,720 and 22,800 will be crucial for the bulls. On the downside, immediate support is seen at 22,240. Yedve advised traders to wait for a move above 22,800 before making significant moves, suggesting buying near support and taking profits around resistance.

Despite this bullish sentiment, Rajesh Bhosale, a technical analyst at Angel One Ltd., cautioned that it may still be too early to confirm a bottom formation, given the recent bounce after a substantial correction over the past few months. He recommended that for the week’s final session, a close above the previous week's high of 22,700 would be ideal to build momentum for a rally in the coming week.

Meanwhile, the Bank Nifty has formed a red candle on the daily chart, indicating strong resistance near the 48,660 level. A sustainable breakout above this level could lead to a fresh rally towards the 49,000 mark. On the downside, support remains strong at 47,840, Bhosale added.