Technical Analysis of the Nifty 50 Index
Trend Overview:
According to the chart, the Nifty 50 had heavy selling pressure early in the day and began the day with a notable decline. Despite a brief recovery rebound with a low of 24,744.80, the general pessimistic feeling persisted. Later in the day, the index seems to have leveled off, staying within a narrow range of about 24,750, which could indicate a momentary pause in selling pressure.
Key Price Levels:
Support Levels:
24,740-24,750: A break below this level may lead to additional selling. The present closing level appears to serve as minor support. 24,700: A crucial support level, since more declines may quicken below this point.
Resistance Levels:
24,780-24,800: According to earlier highs for the day, this is the first resistance zone. For a gap-up to remain higher, it would have to cross this threshold.
24,860-24,880: Should the price break over 24,800, this region would be the next major resistance zone. Should heavy buying volume not appear, this area might cap any upward advance.
Candlestick and Volume Analysis:
Early in the day, there is a clear negative trend indicated by the long red candles. The small-bodied candles show less volatility and consolidation later in the session. This implies that sellers are worn out or indecisive. Volume data could provide further light on whether this consolidation is a result of sellers’ and buyers’ lack of interest or if it’s a sign that the market is getting ready for the next leg of movement.
Gap Up Opening:
For a possible bullish rise, a gap over the 24,78024,800 zone would be essential. The next goal, if it can break and stay above this zone, would be 24,86024,880. The price may return to 24,740 if a failure breakout at 24,800 prompts new selling. Reversal Scenario: The index may retrace to 24,740 or below if it is unable to stay above 24,780.
Opening Gap Down:
More downward momentum would probably be sparked by a gap below 24,740. The next significant level of support would be approximately 24,700. At 24,74024,750, any rebound following the gap down may encounter strong opposition. Bounce Scenario: Anticipate resistance at 24,75024,760 in the event of a bounce following the gap down.
Flat Opening:
A rangebound session that starts between 24,74024,780 would probably result from a flat opening around 24,750. A break below 24,740 would indicate that the bearish trend is still going strong, while a move above 24,780 would affirm a bullish bias. Breakout/Breakdown: For a bullish move, look for a breakout over 24,780; for additional selling pressure, look for a breakdown below 24,740.
Conclusion:
Gap Up: Bullish → Target 24,86024,880 => Above 24,780.
Gap Down: Bearish → Target 24,700 → Below 24,740.
Expect rangebound trading between 24,74024,780 at the start of the day. A break above 24,780 would suggest bullish momentum, while a breach below 24,740 would imply negative continuation.
For obvious indications of the day’s trend, pay great attention to the first half hour of trading. For direction confirmation, pay particular attention to the crucial levels of 24,740 and 24,780.
Technical Analysis of Nifty Bank Index
Trend Overview:
According to the chart, the Nifty Bank Index saw a significant decline during the initial part of the trading day, followed by modest consolidation. After plunging to a low of 51,247.90, the index had a brief recovery but stayed rangebound for the remainder of the day. Although the consolidation period indicates some hesitation among market players, the market finished close to 51,269.55, showing a weak sentiment.
Key Price Levels:
Support Levels:
51,240-51,250: This is an important area because the index reached it during the day and had a slight recovery. The selling pressure may increase if this level is broken. A psychological support level of 51,200 could lead to more declines if it is violated.
Resistance Levels:
The immediate resistance level is 51,300-51,320. A bullish reversal for the following session may be indicated if the index breaks above this zone. After 51,320, the next major resistance is 51,400-51,450; if a gap up materializes, this is an important area to monitor.
Candlestick and Volume Analysis:
Small-bodied candles that signify a time of consolidation follow the huge red candles that show intense selling pressure earlier in the day. The rangebound nature of the day indicates that traders are awaiting a catalyst to break the current trend, as no notable positive reversal was observed. Confirmation of volume would help determine whether this consolidation is the result of a lack of interest in purchasing or selling exhaustion.
Gap Up Opening:
A possible bullish reversal would be indicated by a gap over the 51,30051,320 zone. The index may aim for the next resistance level at 51,40051,450 if it maintains above this level for the first 1530 minutes. If the price is unable to hold above 51,320, new selling may occur, and it may return below 51,24051,250. Reversal Scenario: The price may retreat to 51,250 or below if it is unable to stay above 51,320.
Gap Down Opening:
Further declines could be indicated by a gap below 51,250; 51,200 and possibly even lower would be the next targets. Any recovery after the gap down may see resistance at 51,25051,270. If this level remains resistant, sellers will probably take over. Bounce Scenario: Anticipate resistance at 51,270 if there is a bounce from the gap down.
Flat Opening:
Rangebound movement would probably start between 51,240 and 51,320 if there was a flat opening close to 51,270. While a breakdown below 51,240 would suggest a further bearish continuation, a breakout over 51,320 may suggest a positive rise. breakthrough/Breakdown: For a bullish trend, look for a breakthrough above 51,320; for a bearish continuation, look for a breakdown below 51,240.
Conclusion:
Gap Up: Bullish → Target 51,40051,450 => Above 51,320.
Bearish → Target 51,200 → Gap Down: Below 51,240.
Flat Opening: A breakout above 51,320 would suggest bullish momentum, while a breakdown below 51,240 would indicate negative sentiment. Expect rangebound movement between 51,240 and 51,320.
To ascertain the direction, closely monitor the price movement throughout the first half hour of the trading session. For possible breakouts or breakdowns, the key levels to keep an eye on are 51,240 on the downside and 51,320 on the upside.
Notes for Traders:
This analysis is designed to guide traders with potential scenarios and strategies for the next trading day. Traders should always combine this with their own research and employ risk management strategies. Market behavior can be unpredictable, and factors like global cues, news events, and economic data releases should also be considered when planning trades.
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