Technical View: Today on January 8, in a highly volatile session, the Nifty 50 index recovered from an intraday low of 23,496.15 and closed with minor losses. Action was seen in FMCG, Information Technology and Oil & Gas stocks. The index failed to hold on to early gains. The market closed 18.95 points lower at 23,688.95. This formed a small red candle on the daily chart. ONGC, ITC, Reliance Industries, TCS, Asian Paints were the top gainers stocks of Nifty. While Apollo Hospitals, Trent, Bajaj Auto, Adani Ports, Shriram Finance were the top losers. Nifty Midcap and Smallcap indices fell 1 per cent each.
Among sectoral indices, FMCG, Oil & Gas, IT indices rose 0.4-1.5 per cent. Whereas PSU Bank, Pharma, Metal, Media, Bank, Auto indices were seen trading down by 0.4-1 percent.
“After falling in the early-middle part of the session on Wednesday, Nifty showed a smart upside recovery from lower levels. It ended the day down by only 18 points. Nifty opened on a positive note today and immediately after opening it gained The market has started recovering from the swing low of 23496, said Nagaraj Shetty of HDFC Securities. Its upward recovery continued in 2017 also.
How can Nifty move tomorrow on January 9?
“Although Nifty is still below the important level of 200-day EMA at 23,700, there is no possibility of a sharp break down below this key support. This 200 DEMA has also shown significant upside in the past. Trend reversal has been shown.”
He further said, “The short term trend of Nifty remains weak. But the smart upside recovery from near 23,500 levels is indicating the possibility of an upside bounce in the coming sessions. The index has a decisive close above the resistance at 23,800 levels. The move may confirm the uptrend in the market. Currently, immediate support is seen at the level of 23,496.
Talking about Bank Nifty, after a flat start in the market today, the Bank Nifty index fell below 50,000 points. But the subsequent recovery helped it recover to 445 points. Bank Nifty closed at 49,835.05, down 0.73 percent.
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