Market wrap up(DWM,T,N,E):The Nifty 50 extended its weakness amid rangebound trading for another session on February 6, falling by four-tenths of a percent as traders remained cautious ahead of the RBI MPC (Monetary Policy Committee) meeting outcome due on February 7. As a result, consolidation cannot be ruled out in the upcoming session, though the overall trend remains positive. In the case of a correction, the index may fall to 23,400-23,450 (near the 10 and 20-day EMAs), followed by 23,200, which is considered crucial support (where it negates the higher high-higher low formation). On the higher side, 23,800 is expected to be a crucial hurdle for the index, as above this level, 24,000 is the next key level to watch, experts said. The Bank Nifty continued to outperform the Nifty 50 ahead of the RBI policy decision, ending 0.08 percent higher and forming a small bearish candle with a minor upper and long lower shadow on the daily timeframe. This suggested buying interest at lower levels, as the index still defended the 50 and 200-day EMAs on a closing basis and remained near the upper line of the Bollinger bands. The momentum indicators, with the RSI (Relative Strength Index) at 56.85, remained in the upper band, and the MACD (Moving Average Convergence Divergence) moved closer to the zero line.
Market wrap up(DWM,T,N,E):The Nifty 50 surpassed the falling resistance trendline in the morning by climbing above 23,800 but could not sustain this level amid volatility due to profit booking, closing 43 points down on February 5. This signals a breather after a day of sharp rally; however, the overall sentiment remains favourable for bulls, with the formation of higher tops and higher bottoms on the daily chart. Hence, experts advised buying on every dip. If the index decisively moves above 23,800, a rally toward the 24,000-24,200 zone cannot be ruled out. However, if it falls below 23,800, it may consolidate, with support at 23,500. The Nifty 50 formed a bearish candlestick pattern on the daily charts, but the higher highs and higher lows formation remains intact. Additionally, the index continues to trade above the 50-day and 200-day EMAs. The momentum indicator RSI (Relative Strength Index) at 55.85 remains in the upper band, and the MACD (Moving Average Convergence Divergence) is inching toward the zero line. he Bank Nifty outperformed the benchmark Nifty 50, rising by 185 points. The index formed a small bearish candle with upper and lower shadows, resembling a high wave-like pattern on the daily timeframe, indicating volatility. However, the higher tops and higher bottoms formation continued, with the index closing above the 50-day and 200-day EMAs, which is a positive sign. The momentum indicators RSI maintained a positive bias, and the MACD is moving up toward the zero line.
Market wrap up(DWM,T,N,E):The Nifty 50 rebounded sharply with a gap-up opening and clocked a 1.6 percent rally to hit a one-month high after a day of profit-booking-induced correction, with above-average volumes for another session on February 4. The strong resistance trendline breakout and the decisive closing above the 50 and 200-day EMAs by the index seem to have confirmed the negation of the previous lower highs-lower lows formation. Hence, if the index sustains above 23,600 (200-day EMA), a rally toward the 23,900-24,000 zone can’t be ruled out in the upcoming sessions. However, 23,550 is likely to be immediate support, followed by 23,360 (10 or 20-day EMA), which remains a crucial support level, experts said. The Nifty 50 formed a long bullish candlestick pattern on the daily charts after a gap-up opening. The index not only stayed strong above the 10 and 20-day EMAs (Exponential Moving Averages) but also surpassed the 50 and 200-day EMAs, with a positive bias in the momentum indicator RSI (Relative Strength Index) in the upper band. The index traded above the upper band of the Bollinger Bands and hit the long-falling resistance trendline (adjoining highs of September 27 and December 16, 2024), which is a positive sign. The Bank Nifty reported a long bullish candle after a gap-up opening, confirming the Tweezer Bottom pattern (a bullish reversal pattern) formation from the previous session. The index surpassed the high of Budget Day on a closing basis and recorded 1.93 percent gains. Further, the index closed above the upper band of the Bollinger Bands and moved closer to the 200-day EMA, with a positive bias in the momentum indicator RSI (55).
Market wrap up(DWM,T,N,E):The Nifty 50 slipped into the red on January 3, after the volatility seen on Budget Day, making a negative start to the week by closing 0.5% lower. However, the index recovered more than half of its intraday losses and defended its short-term moving averages (10, 20-day EMAs) as well as the midline of Bollinger Bands on a closing basis, which is a positive sign. According to experts, the index seems to be in the process of forming a new higher bottom in the short term, especially after climbing above the last lower high (23,426). If the index stays above 23,000, an upside bounce toward 23,600 (200-day EMA) can’t be ruled out; however, immediate support is at 23,200. The Nifty 50 reported a bullish candle with a lower shadow on the daily charts, indicating buying interest at lower levels. The index not only defended its short-term moving averages but also the midline of Bollinger Bands on a closing basis, with above-average volumes, which is a positive sign. However, it negated the higher highs-higher lows formation of the last five days. The Bank Nifty showed a 300-point recovery from the day’s low by defending 48,900 (the Budget Day’s low) as well as the midline of Bollinger Bands before closing 0.6% down. It formed a Tweezer Bottom kind of pattern on the daily charts, a bullish reversal pattern. For confirmation, one would need to wait for the action of following session. The index formed a bullish candlestick pattern with minor upper and lower shadows on the daily charts, indicating volatility, though it negated the higher highs formation of the previous three sessions.
Market wrap up(DWM,T,N,E):The Nifty 50 fell, though moderately, for the first time in the last five consecutive sessions, closing with a loss of just 26 points on February 1, the budget day. However, the index maintained a higher highs-higher lows formation for five consecutive days and negated the lower highs-lower tops formation, signaling a positive trend. The index firmly stayed above the upper range of the previous two weeks, i.e., above 23,400. Therefore, as long as the index stays above this level, a march towards 23,600 (200-day EMA) and 23,700 (near the 50-day EMA) remains possible in the upcoming sessions. However, in the case of profit booking, 23,300 may act as support, according to experts. The Nifty 50 formed a small bearish candle with upper and lower shadows, resembling a high wave candlestick pattern on the daily charts, indicating volatility. The index sustained above the 10 and 20-day EMAs and stayed above the midline of the Bollinger Bands, which is a positive sign. The momentum indicator, RSI (Relative Strength Index, at 51.5), stayed in the upper band. The Bank Nifty also formed a high wave-like candlestick pattern on the daily timeframe, indicating volatility. However, the near-term trend seems to have turned positive, considering the higher highs formation in the last few sessions and the index trading above short-term moving averages (10 and 20-day EMAs), as well as above the midline of the Bollinger Bands.
