Nifty:25232.5/-353/-1.38%;Candle:OF;Long day red; Bank Nifty:59404.2/-487.15/-0.81% Candle:OGD;Long day red ; HB:OGU;Short day green;59404;RIL:OGD;Short day red;1392;TCS:OF;Short day red;3104;
Market wrap up(DWM,T,N,E):The Nifty 50 fell sharply by more than 1 percent to hit a three-and-a-half-month low on January 20, reaching close to the 200-day EMA (25,160) amid bearish technical and momentum indicators, subdued market breadth, and a rising India VIX. After a severe correction, the market may bounce back, but sustainability will be the key factor to watch. In such a scenario, the index is expected to face resistance in the 25,300–25,400 zone. Meanwhile, the immediate support is placed at 25,160, followed by 25,000–24,800, which remain crucial support levels, according to experts. The Nifty 50 formed a long red candle on the daily charts after a six-day consolidation breakdown, accompanied by above-average volumes, indicating rising selling pressure. The index traded well below the 20-, 50-, and 100-day EMAs, but held marginally above the 200-day EMA, with short-term moving averages trending downward. The 10-day EMA had already slipped below the 20- and 50-day EMAs, and now the 20-day EMA has breached the 50-day EMA on the downside. The RSI fell below 30, entering the oversold zone at 29.27, while the MACD remained below the zero line with a bearish crossover, and histogram weakness increased further. All these indicators point to strong bearish momentum and selling dominance in the near term. The Bank Nifty also formed a long bearish candle with minor upper and lower shadows on the daily timeframe, accompanied by above-average volumes, indicating a bearish sentiment. The index slipped below short-term moving averages and the midline of the Bollinger Bands in a single session, while the RSI at 48.82 maintained a bearish crossover. The MACD remained below the signal line, with continued weakness in the histogram. All these factors indicate sustained weakness and limited upside momentum in the index.
