Nifty:26140.75/-37.95/-0.14%;Candle:OGD;Doji; Bank Nifty:59990.85/-127.55/-0.21% Candle:OF;Doji ; HB:OGD;Short day red;950;RIL:OF;Short day red;1505;TCS:OGD;Long day green;3294;
Market wrap up(DWM,T,N,E):The Nifty 50 maintained consolidation with a negative bias for the third straight day, falling 0.14 percent and witnessing an indecisive pattern for two consecutive sessions on January 7. Cautionary signals continued from momentum indicators. Hence, consolidation with range-bound trade is expected to continue for a few more sessions before the index stabilises and rebounds. The index needs to surpass and hold above 26,200 for a move towards new highs. Until then, consolidation may persist with crucial support at 26,000, which coincides with the 20-day SMA and upward-sloping support trendlines, experts said. The Nifty 50 formed a Doji candlestick pattern for the second consecutive session, indicating indecision between bulls and bears, especially after forming a bearish candle on the day it hit a record high. The index tested short-term moving averages intraday but managed to remain above them on a closing basis. The index continued to hold well above the midline of the Bollinger Bands, while the RSI declined to 53.96 and showed a negative crossover. The Stochastic RSI sustained a bearish crossover, while the MACD stayed above the reference line, though momentum in the histogram faded further. All these indicators point to near-term consolidation with a cautious undertone. The Bank Nifty formed a small bearish candle with a long lower shadow on the daily charts, indicating minor weakness along with strong buying interest at lower levels. The index traded near the upper Bollinger Bands and remained above all key moving averages as well as the support trendline. The index corrected 0.2 percent on above-average volumes. The RSI edged lower to 62.85 but continued to hold above the reference line. The MACD also stayed above the signal line, though histogram momentum faded slightly. The Stochastic RSI remained below the reference line. All these signals indicate mild consolidation with a positive underlying structure.
