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The Nifty 50 slipped into the red on January 3, after the volatility seen on Budget Day, making a negative start to the week by closing 0.5% lower. However, the index recovered more than half of its intraday losses and defended its short-term moving averages (10, 20-day EMAs) as well as the midline of Bollinger Bands on a closing basis, which is a positive sign. According to experts, the index seems to be in the process of forming a new higher bottom in the short term, especially after climbing above the last lower high (23,426). If the index stays above 23,000, an upside bounce toward 23,600 (200-day EMA) can't be ruled out; however, immediate support is at 23,200.
Levels For The Nifty50 (23,361)
Resistance based on pivot points: 23,383, 23,420, and 23,481
Support based on pivot points: 23,261, 23,223, and 23,162
The Nifty 50 reported a bullish candle with a lower shadow on the daily charts, indicating buying interest at lower levels. The index not only defended its short-term moving averages but also the midline of Bollinger Bands on a closing basis, with above-average volumes, which is a positive sign. However, it negated the higher highs-higher lows formation of the last five days.
Levels For The Nifty Bank (49,211)
Resistance based on pivot points: 49,342, 49,452, and 49,631
Support based on pivot points: 48,985, 48,875, and 48,696
Resistance based on Fibonacci retracement: 49,409, 50,368
Support based on Fibonacci retracement: 47,875, 46,078
The Nifty Bank showed a 300-point recovery from the day's low by defending 48,900 (the Budget Day's low) as well as the midline of Bollinger Bands before closing 0.6% down. It formed a Tweezer Bottom kind of pattern on the daily charts, a bullish reversal pattern. For confirmation, one would need to wait for the action of following session. The index formed a bullish candlestick pattern with minor upper and lower shadows on the daily charts, indicating volatility, though it negated the higher highs formation of the previous three sessions.
source: Sunil Shankar Matkar, Network 18 and icharts. In
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