Market wrap up(DWM,T,N,E):The Nifty 50 clocked a nearly 1 percent rally on October 1 as bulls ruled the market after an eight-day struggle, climbing back above the 100-day EMA (24,740). Sentiment definitely improved somewhat after the RBI policy announcement. However, the index needs to surpass and sustain above 25,000 (the midline of the Bollinger Bands and the 50 percent retracement of the recent fall) for a sharp upward journey. Until then, it may see consolidation and range-bound trading, with 24,600 acting as support — a level that has been defended in the previous three sessions, experts said. The Nifty 50 formed a long bullish candle on the daily timeframe with above-average volumes. The index climbed above the 100-day EMA, but remains below the short- and medium-term moving averages. These moving averages have flattened after trending downward during the recent fall. The RSI jumped to 47.23, the Stochastic RSI showed a positive crossover, and the MACD still sustains a bearish crossover, but the histogram indicates that bearish momentum is fading. All this indicates a potential shift in momentum, but confirmation is still required with a move above key resistance levels. The Bank Nifty staged a spectacular rally on Wednesday, forming a strong bullish candle on the daily charts with above-average volumes, and surpassing all key moving averages in a single session. The index also formed a higher high–higher low pattern for another session and reached close to a falling resistance trendline. The RSI and Stochastic RSI showed bullish crossovers, while the MACD also showed a positive crossover, with the histogram moving above the zero line. All this indicates strengthening bullish momentum and a potential breakout if the resistance trendline is crossed.
