Market wrap up(DWM,T,N,E):The market failed to sustain its intraday rally due to a lack of strength at higher levels, and there was also a death crossover (the 50-day EMA falling below the 200-day EMA), signaling the strong position of bears at Dalal Street. Experts believe it remains a ‘sell on rally’ market. The index continued its downtrend for the seventh consecutive session. Therefore, if the index decisively breaches 23,000 on a closing basis, the 22,800-22,600 range (Wednesday’s low and the low of June 6, 2024) cannot be ruled out in the upcoming sessions. However, in case of a bounce back, 23,250-23,350 will act as an immediate hurdle zone for the index. The Nifty 50 formed a small-bodied bearish candlestick pattern with a long upper shadow on the daily charts, indicating a lack of strength at higher levels. The index remained not only below all key moving averages (10, 20, 50, 100, and 200-day EMAs) but also in the lower band of Bollinger Bands. Furthermore, the momentum indicators, with RSI (Relative Strength Index) at 40.17, stayed in the lower band, and MACD (Moving Average Convergence Divergence) was below the zero line with a negative crossover, signaling further negativity. The Bank Nifty also reported a bearish candlestick pattern with a long upper wick on the daily timeframe, indicating selling pressure at higher levels. The momentum indicators RSI remained in the lower band, and MACD stayed below the zero line. Additionally, the index traded well below all key moving averages. However, it has consistently defended the midline of Bollinger Bands for the past three straight sessions and the 50% Fibonacci retracement (of the recent rally from 47,844 to 50,642), which is a bit of positive news, though the overall sentiment is still in favour of the bears.
