Technical View: Nifty 50 continued its declining trend. Nifty remained below its 200-day EMA (exponential moving average) of 23,700 for another session on January 9 amid caution ahead of TCS results. This was in line with analysts’ expectations. However, it continued to defend the upward sloping trendline. This line coincides with the level of 23,500. As long as the index holds at this level, a rebound towards the zone of 23,700-24,000 looks more likely. However, experts say that if there is a decisive fall below this level, the index may slip to November’s low of 23,263.
Nifty 50 remained in the negative zone throughout the session. It closed at 23,527 with a fall of 162 points. This formed a bearish candlestick pattern with above average volume on the daily chart. The index remained below all major moving averages. The negative trend in momentum indicators indicated overall weakness.
How will Nifty move on Friday, January 10?
Jatin Gedia of Mirae Asset Sharekhan said, “The zone of 23,550 – 23,500 will act as a make or break zone for Nifty. If there is a breakout below this zone, it may slide to 23,263 levels. If it goes below this then it will be a psychological threat.” The level may fall to 23,000 levels.
According to him, on the positive move of Nifty, the hourly moving averages seen at 23,631 – 23,702 will act as immediate resistance.
Amid the fall in the market, dealers made bumper buying in these two stocks today, know how much both the shares can rise.
The above options data indicates that the index is likely to remain in the range of 23,000-24,000. In this, immediate support is seen at 23,500 and resistance at 23,800.
How will Bank Nifty move on Friday, January 10?
Bank Nifty also extended its downtrend for another session with the benchmark Nifty 50 showing correction above Rs. It fell 332 points to 49,504. This level is its lowest closing level after June 6, 2024. The index closed decisively below its August low. It traded well below all major moving averages. Its 10-day EMA is now on the verge of falling below the 200-day EMA. This situation is indicating bearish sentiment.
A correction of 2,100 points has been seen in the banking index since last Friday. Chandan Tapadia of Motilal Oswal said, “As long as it is below the zone of 49,750, it may weaken and slip till 49,250 and then 48,750 levels. While on the upside, resistance is seen at 49,750. After this, it can slide towards 50,000 levels.” Resistance is visible at the level.
India VIX, volatility index, maintained caution among bull traders and rose 1.33% to 14.66. VIX needs to stay below 14 points for the bulls to regain strength.
(Disclaimer: The views and investment advice expressed on Moneycontrol.com are the personal views and opinions of investment experts. Moneycontrol advises users to consult certified experts before taking any investment decision.)