Market wrap up(DWM,T,N,E):Relentless buying interest continued in the equity benchmarks for four consecutive days, rising more than 1 percent on January 31 and signaling optimism among market participants ahead of the Union Budget scheduled to be presented on February 1. In fact, the Nifty 50 also had a healthy start to the February series on Friday, surpassing short-term moving averages, and there was a strong resistance trendline breakout with above-average volumes. Hence, if the index continues its upward journey, the immediate hurdle zone on the higher side lies between 23,620 and 23,680 (200-day EMA, 50-day EMA), followed by 23,800-23,900 (trendline resistance and 100-day EMA) as the next resistance. However, in the case of a trend reversal, the immediate support may be at 23,300, followed by 23,000, which is considered crucial support, according to experts. The Nifty 50 recorded its biggest single-day gains since January 2 and formed a long bullish candlestick pattern on the daily charts. Additionally, with the index closing above the lower high of January 21 (23,426), there seems to be a reversal of the bearish pattern of lower tops-lower bottoms seen in the last month, indicating bullish development. The momentum indicator RSI (Relative Strength Index at 52.17) entered the upper band with a positive bias, while MACD (Moving Average Convergence Divergence) also showed a positive crossover but remained below the zero line. On the hourly charts, the index climbed above all key moving averages, with a positive bias in both RSI and MACD. On the weekly timeframe, the index closed above the 50-week EMA and formed a robust bullish candle that completely engulfed the previous two weeks’ candles, signaling positivity. The Bank Nifty also formed a bullish candlestick pattern on the daily charts, maintaining its upward trend and higher low formation for the fourth consecutive session. The index gained 0.6 percent and sustained above short-term moving averages (10, 20-day EMAs), while volumes remained above average for five consecutive days. On the weekly timeframe, the index surged 2.52 percent (its biggest weekly gain since the first week of December 2024) and formed a large bullish candle, engulfing the previous two weeks’ candles.
