Market wrap up(DWM,T,N,E):The market continued its upward journey with a higher highs-higher lows formation for the third consecutive session, closing four-tenths of a percent higher with above-average volumes on January 30, the expiry day for monthly F&O contracts. The index tested the 20-day EMA and the mid-line of the Bollinger bands, which is at 23,300. Closing decisively above this level is expected to play a crucial role in further upward movement toward 23,400 (50-week EMA), followed by 23,600. However, as long as the index trades below this level, consolidation can’t be ruled out, with 23,000 acting as support, given the elevated VIX, experts said. The Bank Nifty also gained further momentum, especially since the gap-up opening on Tuesday, forming a bullish candle with a higher lows formation for the third straight session. The index closed above its short-term moving averages (10 and 20-day EMAs), rising 0.3 percent with above-average volumes. A lower high-lower low pattern will be negated if the index decisively crosses the 49,650 zone. On the weekly timeframe, the index formed a robust bullish candlestick pattern with a 2 percent rally, signaling a positive trend. The Nifty 50 formed a bullish candle for another session, especially after the Doji pattern formation on Tuesday, indicating that the market may be gaining strength ahead of the Union Budget to be presented on Saturday. The momentum indicators also showed a positive crossover, but the RSI (Relative Strength Index) at 45.9 remains in the lower band, and the MACD (Moving Average Convergence Divergence) is still below the zero line on the daily charts. However, on the hourly charts, both indicators showed good strength.
