In yesterday’s trade, the market saw a decline after four consecutive days of rally. On January 6, the market closed down about 1 per cent. In yesterday’s trade, there was selling pressure in Banking, Financial, FMCG, IT, Metal and Pharma. The effect of global weakness was also visible on the Indian markets. Significantly, in the US, the FOMC has indicated that the period of increasing interest rates may start earlier than expected. This news has had a negative impact on the market sentiment across the world. Apart from this, the increasing cases of Karona also put pressure on the market.
On December 6, ie yesterday, the BSE Sensex closed at the level of 59601.84, down 621.31 points. At the same time, the Nifty50 index lost 179.40 points to close at 17745.90. This created a bearish candle on the daily chart.
Rajesh Palviya of Axis Securities Says that the index opened with a fall in yesterday’s trading and continued to consolidate in a small range throughout the trading session. On Daily Chart Nifty has formed a small bearish candle making lower high/low than the previous session and closed weaker than the previous session which is indicating weakness. In this case, any break out coming from the high-low range of Daisy candle will clear the direction of the market.
However, Rajesh Palviya believes that the overall short term trend of the market is still bullish. Any pull back rally towards 17,600-17,500 should be treated as a buying opportunity with a stop loss of 17,400. Going forward we can see Nifty going towards 18,000-18,200. Rajesh Palviya advises short term traders and investors to take partial profit near the supply zone of 18,000-18,200.
In yesterday’s trade, the small-medium stocks had gained more than the giants. Nifty Midcap 100 index closed with gains of 0.13 per cent and Smallcap 100 index by 0.21 per cent yesterday.
Here we are giving you some such data, on the basis of which it will be easy for you to catch profitable deals. It should be noted here that the Open Interest (OI) and Volume of Stocks figures in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 17,668.37 and after that the second support is located at 17,590.83. If the index turns upwards, then it may face resistance at 17,810.67 then 17,875.43.
The first support for Nifty Bank is located at 37,114.9 and after that the second support is located at 36,739.6. If the index moves upwards, then it may face resistance at 37,809 then 38,127.8.
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