Market wrap up(DWM,T,N,E):The benchmark Nifty 50 showed a smart recovery from the day’s low (almost similar to January’s low), although it sustained a downward journey for six consecutive days, ending the session 27 points lower on February 12. The overall trend remains in favour of the bears, but the chart formation signals the possibility of a rebound soon, according to experts. Therefore, if it sustains 23,000 on a closing basis in the upcoming sessions, the immediate hurdle on the higher side will be 23,200-23,300. However, falling below this level could open the door for Wednesday’s low of 22,800. The Nifty 50 formed a Long Legged Doji candlestick pattern (though not a classical one) on the daily charts, indicating indecision among buyers and sellers. Generally, this pattern acts as a trend reversal signal. The overall trend remains negative, as the index traded below all key moving averages (10, 20, 50, 100, and 200-day EMAs) and is positioned in the lower band of Bollinger Bands. The Bank Nifty also formed a similar pattern as the Nifty 50 (though not a classical one) on the daily timeframe, rising by 76 points after showing a 745-point recovery from the day’s low. The index traded below all key moving averages and dropped below the previous swing low, indicating an overall negative trend. However, it managed to defend the midline of the Bollinger Bands on a closing basis for another session, which is a positive sign.
