Nifty:26178.7/-71.6/-0.27%;Candle:OGD;Doji; Bank Nifty:60118.4/74.2/0.12% Candle:OGD;Short day green ; HB:OGD;Doji;;963RIL:OGD;Long day red;1509;TCS:OGD;Short day green;3257;
Market wrap up(DWM,T,N,E):The market continued to consolidate and witnessed profit booking for the second consecutive session, especially after hitting a new high, closing one-third of a percent lower and falling below the support trendline (which previously acted as a resistance trendline at 26,200) on January 6. The index continued to trade above all key moving averages, but momentum indicators signalled some short-term caution. Hence, if the index sustains below 26,200, the consolidation may continue, with the crucial support of 26,000 likely to be tested in the next few sessions, as a decisive fall below this level could bring bears into action. However, the 26,300–26,400 zone is expected to act as a resistance area, according to experts. The Nifty 50 formed a small red candle with long upper and lower shadows and above-average volumes, resembling a doji or high-wave-like candlestick pattern on the daily timeframe, signalling indecision and volatility. The index saw a breakdown below the support trendline but continued to hold above all key moving averages. The Stochastic RSI turned bearish, while the RSI dropped to 55.62 and moved toward the reference line. The MACD remained above the signal line, but the bullish bias faded slightly in the histogram. All these indicators suggest short-term consolidation with caution. The Bank Nifty performed better than the Nifty 50 and nearly defended the previous day’s low, forming a bullish candle with upper and lower shadows on the daily charts with above-average volumes. The index also sustained above the upper Bollinger Band, which is in expansion mode, as well as the support trendline. The RSI at 66 held above the reference line, while the MACD also remained above the signal line with further upside in the histogram. All these indicators suggest relative strength and a positive bias compared to the benchmark.
