Technical View: Nifty 50 broke its two-day rising trend. Today it declined. However it managed to defend the level of 24,000 on closing basis on January 3. Today, selling pressure was seen due to banking and financial services, technology and pharma stocks. If the index fails to defend the 10-day EMA (Exponential Moving Average) or 200-day SMA (Simple Moving Average) of 23,900, the downtrend may extend to 23,700 (200-day EMA, important support). However, experts said that defending it in the upcoming sessions could open the doors to 24,200-24,400 zone.
Nifty opened flat at 24,196, which was also its intraday high and remained under pressure throughout the session. It closed at 24,005, down 184 points (0.76%) with above average volume. But before this the index had slipped to a low of 23,976. This formed a bearish belt hold pattern, a bearish reversal pattern on the daily chart. But for this it is necessary to confirm it in some sessions.
How could Nifty move on Monday 6th January?
Nagaraj Shetty of HDFC Securities According to, the uptrend continues for Nifty in the near term. “A decisive move above Thursday’s high (24,226) may see fresh buying in the index towards 24,400-24,500 levels. Immediate support lies around 23,930-23,840 levels,” he said.
The above Weekly Options data indicates that Nifty is finding major support at 23,700 zone. With this, resistance may have to be faced in the zone of 24,200-24,500. Overall, the trading range for the next sessions could be 23,700-24,500.
Dealers made bumper buying in two stocks of insurance and banking sector today to earn quick money, know how much both the stocks will rise.
How can Bank Nifty move on Monday 6th January?
Bank Nifty lost all its previous day’s gains. The index fell 617 points (1.2%) to 50,989, slightly below 51,000. This led to a long bearish candlestick pattern on the daily timeframe with above average volume. The index is now stopping below 10, 20, 50 and 100-day EMAs with negative crossovers in momentum indicators. This is indicating weakness. On the weekly chart, it formed a high wave type pattern. This pattern was indicating volatility. The index was down 0.6% for the week.
Amol Athawale of Kotak Securities “The 200-day SMA or the 50,500-50,600 range will act as an important support zone,” it said.
On the upside, the 50-day and 20-day SMAs, or the 51,800-52,200 range, could be important resistance zones for the bulls, he said.
Meanwhile, India VIX remained supportive of the gains. It fell 1.44% to 13.54. This extended the downtrend for another session.
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