Technical View: The Nifty 50 showed a recovery of about 22,800 to 250 points in the midst of market volatility. Today, on February 12, the index closed down with a slight decline. It saw a decline for the sixth consecutive session. In this, the process of lower high-loving low levels continued for five consecutive days. The index created a long legged duji candlestick pattern on the daily chart after a sharp fall. This pattern is indicating indifference between Bulls and Bears. But it is increasing the possibility of bottom reversal. Even though the indexes bounced, stability will be important to move forward, given the spirit of the current recession.
Experts say that in the event of a bounce-back, the index may face resistance in 23,150–23,300 zones. However, in the event of further decline, 22,800 will serve as a level support. Falling below it will potentially cause more sale pressure.
The Nifty reached the low -lying level of 22,798, opening with the decline and further declining. It accelerated in the afternoon, but the lead could not remain maintained between volatility and fell 27 points to close at 23,045.
How can Nifty’s move be on Thursday 13 February
According to Nagraj Shetty of HDFC Securities, long -legged dosy pattern formation usually indicates the possibility of reversal from the lower level after a proper decline.
He further explained that the Nifty trend is still weak. He said, “However, the formation of interesting patterns on a support of 22,800 may indicate the existing level or a slightly potential reversal pattern. Confirmation of a reversal pattern may probably open a large bouncy doors in the market.”
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He further said, immediate support in Nifty has been kept at the level of 22,800. Given that a permanent step above the level of 23,150–23,200 can lead to a more speed for short term.
How can Bank Nifty move on Thursday 13 February
Bank Nifty returned after a three -day fall and created a chart pattern of Nifty 50. This pattern is indicating the possibility of trend reversal. The banking index rose 76 points to 49,479. But overall trends are made of recession. The reason for this is that the index is trading below all the major moving averages. In this, the lower level of intraday was seen at 48,734.
Anshul Jain of Lakshmishree Investments said that for the upcoming session, “Resistance is at 49,600, where the short covering can be faster. The breakout above this level can push the index to 50,000. The next possible target will be 50,600.”
He advised that traders should monitor the continuous Momentum above 49,600. Consolidation can occur if this does not happen.
India Vix, the index of fear, remained at a high level. It rose 0.17 percent to 14.90. This increased the trend upwards in the third consecutive session. This increased further troubles for the stunnings.
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