Nifty50-24,194.50
The benchmark index, Nifty50, consolidated after sharp gains over the last two trading sessions. It opened on a positive note at 24,343 but failed to cross above the previous day’s high and remained trading largely in a sideways range of 24,125–24,243 for the rest of the session. The index remained within the previous session’s range and formed a bearish candle on the daily chart.
The advance-decline ratio favoured the bulls around 3:2. The Nifty managed to hold above 21-EMA, currently around 24,100, which may act as a crucial short-term support zone in today’s trading session. The 14-period RSI is trending sideways, currently placed at 50. Other technical indicators, MACD and ADX/DMI, remained flat.
Currently, the Nifty has support around 24,100 (i.e., 21-EMA). A fall below it may turn the index negative toward 24,000. However, on the upside, the index must cross and hold a pivot level of 24,225 to move toward 24,400–24,500.
According to O’Neil’s methodology of market direction, the current market status is in a “Rally Attempt”. A Rally Attempt begins on the third day that the index closes higher off its most recent bottom after being in a Correction (also known as Downtrend).
Nifty Bank-52,191.50
This major sectoral index opened 350 points higher at 52,555. However, later, it started behaving in a volatile manner and lost the opening gain. It remained traded in the range of 52,555–52,000 and closed on a flat note at 52,191. The market action during the day formed a bearish candle on the daily chart with a higher-high and higher-low price structure. The momentum indicator RSI turned flat and is currently placed around 57, along with a positive crossover on MACD. However, MACD is still trending below its central line.
The Nifty Bank is trending above all its key moving averages but is still trading in the rectangular price range of 52,300–50,000. To turn more bullish from the current level, it must cross and hold above 53,300. Further, sustainable trading above 52,300 may turn the market more bullish and may lead the index toward 54,000 in the coming days. However, failure to cross and hold 52,300 may remain traded in a sideways trajectory.
According to O’Neil’s methodology of market direction, the current market status is in a “Rally Attempt”.
Two stock recommendations to buy from MarketSmith India
KARURVYSYA: Current market price ₹230| Buy at ₹225–231| Profit goal ₹270| Stop loss ₹211| Timeframe 3–4 months
POLYPLEX: Current market price ₹1,254.40| Buy at ₹ 1,230–1,260| Profit goal ₹1,490 | Stop loss ₹1,140| Timeframe 2–3 months
