Market wrap up(DWM,T,N,E):The Nifty 50 rebounded sharply with a gap-up opening and clocked a 1.6 percent rally to hit a one-month high after a day of profit-booking-induced correction, with above-average volumes for another session on February 4. The strong resistance trendline breakout and the decisive closing above the 50 and 200-day EMAs by the index seem to have confirmed the negation of the previous lower highs-lower lows formation. Hence, if the index sustains above 23,600 (200-day EMA), a rally toward the 23,900-24,000 zone can’t be ruled out in the upcoming sessions. However, 23,550 is likely to be immediate support, followed by 23,360 (10 or 20-day EMA), which remains a crucial support level, experts said. The Nifty 50 formed a long bullish candlestick pattern on the daily charts after a gap-up opening. The index not only stayed strong above the 10 and 20-day EMAs (Exponential Moving Averages) but also surpassed the 50 and 200-day EMAs, with a positive bias in the momentum indicator RSI (Relative Strength Index) in the upper band. The index traded above the upper band of the Bollinger Bands and hit the long-falling resistance trendline (adjoining highs of September 27 and December 16, 2024), which is a positive sign. The Bank Nifty reported a long bullish candle after a gap-up opening, confirming the Tweezer Bottom pattern (a bullish reversal pattern) formation from the previous session. The index surpassed the high of Budget Day on a closing basis and recorded 1.93 percent gains. Further, the index closed above the upper band of the Bollinger Bands and moved closer to the 200-day EMA, with a positive bias in the momentum indicator RSI (55).
