Nifty:26250.3/-78.25/-0.3%;Candle:OF;Short day red; Bank Nifty:60044.2/-106.75/-0.18% Candle:OGU; Short day red; HB:OGU;Long day red;979;RIL:OGU;Inverted hammer red;1577;TCS:OF;Long day red;3213;
Market wrap up(DWM,T,N,E):The Nifty 50 corrected about one-third of a percent on profit booking on January 5 following a sharp rally in the previous session. However, the higher high–higher low formation continued for the fourth consecutive day, and the index held above the trendline support at around 26,200, which had earlier acted as a resistance line before turning into support. Momentum indicators also remained positive. As long as the index holds above 26,200, the possibility of a rebound towards the 26,400–26,500 zone cannot be ruled out. However, a decisive break below this level could push the index into a consolidation phase, with 26,000 emerging as a crucial support, below which bears may become active, according to experts. The Nifty 50 formed a bearish candle with minor upper and lower shadows on the daily timeframe, indicating selling pressure amid volatility. However, the higher top–higher bottom structure remained intact, and the index continued to sustain well above all key moving averages, with short-term moving averages trending upward. The MACD maintained a bullish crossover, with the histogram rising further. The RSI (58.79) and Stochastic RSI (86.96) edged lower but continued to stay above their respective signal lines, indicating that the overall momentum remains positive despite minor near-term weakness. The Bank Nifty also traded lower on profit booking, slipping 0.2 percent, but bulls remained in a strong position as the index sustained above the upper Bollinger Band and the falling trendline, which has now turned into support after acting as resistance earlier. The MACD stayed bullish, with the histogram climbing further. The RSI remained well above the reference line, though it dipped marginally to 65.05. All these indicators suggest that the broader trend for Bank Nifty remains positive, with only limited near-term consolidation risk.
