Nifty:25289.9/132.4/0.53%;Candle:OGU;Short day red; Bank Nifty:59200.1/399.8/0.68% Candle:OGU;Doji ; HB:OGU;Long day red;921;RIL:OGU;Short day red;1404;TCS:OGU;Doji;3152;
Stocks retained in F&O ban: Bandhan Bank, Sammaan Capital
Stocks removed from F&O ban: Nil
Market wrap up(DWM,T,N,E):The Nifty 50 snapped its three-day losing streak, bouncing back above the 200-day EMA and rising over half a percent on January 22. This relief rally was on expected lines but, according to experts, needs a strong and sustainable close above 25,850 for continuation of the said uptrend. Until then, consolidation and volatility may be seen in the short term, given the bearish sentiment and elevated VIX. Immediate support is placed at 25,160, followed by 24,900 as a crucial support level; however, immediate resistance is seen at the 25,500–25,600 levels. The Nifty 50 formed a small bearish candle with upper and lower shadows, resembling a high-wave kind of pattern on the daily charts, indicating volatility and indecision among market participants. The index negated the lower highs–lower lows formation of the previous three sessions but needs strength for continuation of a higher high–low structure. The index climbed back above the 200 DEMA but remained below all other key moving averages, while the RSI (33.82) and MACD maintained a bearish crossover with the histogram below the zero line. The Stochastic RSI turned bullish but remained in the oversold zone. All this indicates a cautious near-term outlook despite the relief bounce. The Bank Nifty rallied 400 points and formed a doji candlestick pattern on the daily charts following three bearish candles, indicating indecision among bulls and bears. Generally, this pattern acts as a trend reversal signal but needs confirmation in the following session. The index negated the lower highs of the previous three consecutive sessions. It climbed above the 50 DEMA but remained below short-term moving averages and the midline of the Bollinger Bands, though it managed to hold above 58,800 (trendline support) for another session. The momentum indicators still signal a bearish mood, with the RSI at 47 below the reference line, while the MACD also remained below the signal line with further weakness in the histogram. All this indicates continued uncertainty in the near term.
