Market wrap up(DWM,T,N,E):The Nifty 50 slipped into the red on January 3, after the volatility seen on Budget Day, making a negative start to the week by closing 0.5% lower. However, the index recovered more than half of its intraday losses and defended its short-term moving averages (10, 20-day EMAs) as well as the midline of Bollinger Bands on a closing basis, which is a positive sign. According to experts, the index seems to be in the process of forming a new higher bottom in the short term, especially after climbing above the last lower high (23,426). If the index stays above 23,000, an upside bounce toward 23,600 (200-day EMA) can’t be ruled out; however, immediate support is at 23,200. The Nifty 50 reported a bullish candle with a lower shadow on the daily charts, indicating buying interest at lower levels. The index not only defended its short-term moving averages but also the midline of Bollinger Bands on a closing basis, with above-average volumes, which is a positive sign. However, it negated the higher highs-higher lows formation of the last five days. The Bank Nifty showed a 300-point recovery from the day’s low by defending 48,900 (the Budget Day’s low) as well as the midline of Bollinger Bands before closing 0.6% down. It formed a Tweezer Bottom kind of pattern on the daily charts, a bullish reversal pattern. For confirmation, one would need to wait for the action of following session. The index formed a bullish candlestick pattern with minor upper and lower shadows on the daily charts, indicating volatility, though it negated the higher highs formation of the previous three sessions.
