Technical View: The Nifty 50 returned on January 28 after a few days of correction but the index was Volatil. It created the DoJi formation on the daily chart. This formation is indicating indifference between Tejadis and Mandadis before the budget. Experts feel that the budget has come close, so high volatility and cautious attitude may appear in the market. The budget is scheduled to appear on 1 February. If the index goes above 23,000 and remains up, the chances of a rally upward may increase. However, as long as it is trading below 23,000, the consolidation may continue in it, in which the pan of the mandis will be heavy. This is said by experts.
Today Nifty opened at 22,960 as expected and traded in the positive zone throughout the session. At the end of the trading, it touched the highest level of 23,138 and climbed 128 points a day to close at 22,957.
How can Nifty’s move be on Wednesday 29 January
Jatin Gedia of Mirae Asset Sharekhan said, “As long as the Nifty manages to remain above 23,000 – 23,050, the dowstrend may remain intact. In such a situation, the Nifty can maintain minor fluctuations in the resistance zone of 23,000 – 23,050 in the Nifty. Should be used as a sale opportunity. “
According to him, important support zone in it is seen at 22,780 – 22,670.
Option data indicates that the level of 23,000 is expected to be an important zone for the front direction of the Nifty 50. By the budget day, the index can continue to trade in a wider range of 22,000-24,000.
How can Bank Nifty move on Wednesday 29 January
Bank Nifty showed a gap-up opening of more than 300 points. It showed 802 points (1.67 percent) to 48,867 levels, performing better than the Nifty 50. The index lost 380 points from the high level of the day of 49,247. It created a bullish candlestick pattern with an upper lower shadow and long upper wick on the daily time frame. It is indicating pressure at a high level. However, the index managed to close above 10-Day EMA.
Anshul Jain of Lakshmishree Investments said, “A decisive move above 48,900 in bank Nifty can trigger a second wave of short covering. So that the index can reach 49,600. It was its rear swing high. If this level breaks , So the market structure increases. “
He advised that traders should continuously monitor Momentum above 48,900 as a purchase opportunity. On the other hand, the tendency of recession may become stronger when failing to tick at this level.
Meanwhile, India VIX was above the level of Voltyness Index 18. It rose 0.34 percent to 18.20. All these major moving averages remained above. Which is a sign of caution for bulls until VIX comes below 14.
(Disclaimer: The ideas and investment advice on Moneycontrol.com have their own personal views and opinions. Moneycontrol advises users to consult certified experts before making any investment decisions.)