Nifty:25157.5/-75/-0.3%;Candle:OGD;Doji; Bank Nifty:58800.3/-603.9/-1.02% Candle:OGD;Short day red ; HB:OGD;Short day red;921;RIL:OGD;Short day green;1408;TCS:OGD;Short day green;3122;
Market wrap up(DWM,T,N,E):The Nifty 50 turned volatile after a severe correction seen in the previous session and closed a tad below the 200 DEMA (25,160), posting a one-third percent loss on January 21. The formation of indecisive pattern increases the possibility of a trend reversal after the recent fall, though confirmation is needed in the following session. In fact, the overall trend remains in favour of bears, and the VIX reached a seven-month high. A decisive and sustainable fall below 25,900 could drive the Nifty down toward the 24,600–24,400 levels; however, above 25,300, the index may move upward toward the 25,450–25,600 levels, experts said. Nifty 50 formed a small green candle with long upper and lower shadows, resembling a doji-like candlestick pattern (not a classical one) on the daily timeframe, which indicated indecision among market participants. With the fall below the 200-day EMA, the index is now trading below all key moving averages, with the 10-day EMA breaking below the 100-day EMA and the 20-day EMA slipping below the 50-day EMA. Further, the index has shifted below the lower Bollinger Band. The RSI remained in the oversold zone at 27.89, while the MACD stayed below the signal and zero lines, with further weakness in the histogram. All this indicates continued weakness and heightened volatility. The Bank Nifty reported a bearish candle with long upper and lower shadows on the daily charts, indicating further weakness amid volatility. With Wednesday’s 1 percent fall, the index slipped below the 50-day EMA, though it continues to sustain above long-term moving averages (the 100-day and 200-day EMAs). The index managed to hold above the lower Bollinger Band as well as the 58,800 support level on a closing basis. The RSI dropped further to 40.77, while the MACD maintained a bearish crossover with a further decline in the histogram. All this indicates cautious sentiment with downside risk persisting.
