Market wrap up(DWM,T,N,E):The market gained more strength with the Nifty 50 rising 0.9 percent on January 29, a day before the expiry of January series derivative contracts due on January 30. The index climbed above the crucial 23,000 mark and closed above the 10-day EMA (23,134), but the trend is still in favour of bears due to the continuation of the lower tops-lower bottoms formation. The index needs to surpass and sustain above the 23,350-23,400 range to negate this lower top-lower bottom formation, as above it, 23,600-23,700 is expected to be a key hurdle (200-day and 50-day EMA). However, as long as it stays below 23,400, the consolidation may continue, with support at the 23,000-22,900 zone, according to experts. The Nifty 50 formed a bullish candlestick pattern on the daily charts with the continuation of the higher high-higher low formation for another session. But the trend is still in favour of bears, as the index traded in the lower band of the Bollinger bands and below the 20, 50, 100, and 200-day EMAs. Furthermore, the momentum indicators – the RSI (Relative Strength Index) showed a positive crossover but still in the lower band, and the MACD (Moving Average Convergence Divergence) remains below the zero line. Bulls appear supportive for the Bank Nifty, which continued its upward journey for the second consecutive session, forming a bullish candlestick pattern on the daily charts, while there has been above-average volume for the third consecutive session. The index stayed above the 10-day EMA for another session and tested the midline of the Bollinger bands intraday, which is a positive sign. However, the index is still below the 20, 50, 100, and 200-day EMAs and continues to show the lower high-lower low pattern, which can only be negated upon decisively surpassing the 49,650 zone on the higher side.
