On January 18, the markets closed with a fall of about 1 per cent due to the fall in the last hour of the trading session. Weak global cues influenced the market. Weakness was seen in almost all sectors in yesterday’s trade. BSE Sensex closed at 60,754.86, down 554.05 points. At the same time, Nifty slipped 195.10 points and closed at 18,113 level. Nifty formed a Bearish Engulfing Pattern on the Daily Chart yesterday.
Like the giants in yesterday’s trade, there was pressure on small-medium stocks too. Nifty Mid and Smallcap closed yesterday with a loss of more than 2 per cent.
Mazhar Mohammad of Chartviewindia.in says that Nifty50 has formed a Bearish Engulfing Pattern. Yesterday it lost all the gains of the previous trading session by reversing from the intraday high of 18,351. In the process, it almost filled the bullish gap formed in the zones 18,128 and 18,081 with intraday lows of 18,085. In such a situation, it seems that if Nifty remains below 18,080 in the trading session of 19 January, then it may see further decline and Nifty may be seen going towards 17,600.
Conversely, if the bulls manage to maintain the 18,080 level on a closing basis, then we may see sideways consolidation in the market. Till the time Nifty does not close above 18,350, strength will not be seen. Hence, staying away from long side positions for the time being and going short below 18,080 may be a better strategy.
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 18,015.7 and after that the second support is located at 17,918.3. If the index turns upwards, then it may face resistance at 18,280.7 then 18,448.3.
The first support for Nifty Bank is located at 37,918.59 and after that the second support is located at 37,626.89. If the index moves upwards, then it may face resistance at 38,678.8 then 39,147.3.
Global signal weak
Global cues look weak. The pressure is being seen in Asia. Flat trading is going on in SGX NIFTY. The US market’s mood has worsened due to the rise in bond yields. Yesterday the DOW closed by slipping around 550 points. On the other hand, the rise in crude oil is also continuing and Brent has moved towards $ 90.
US markets fall sharply
There has been a huge decline in the US markets. The US market has reached the low level of several weeks. There has been heavy selling in financial and tech stocks. Goldman Sachs is down 8% after the result. The Dow saw a decline of 543 points. Whereas yesterday &P 86 and NASDAQ closed down 387 points while NASDAQ reached 3-month low. Bond yields have risen on indications that interest rates will rise soon. The 10-year US bond yield stands at 1.88%.
Crude oil prices continue to rise
Crude oil prices continue to rise. The price of Brent has reached $ 88.74. At the same time, the dollar index is at 95.71. The US futures market is trading flat.
Mixed business for Asian markets
Today, mixed trading is being seen in Asian markets. SGX NIFTY is showing a gain of 29.00 points. At the same time, Nikkei is seen around 27,744.84 with a fall of 1.81 percent. At the same time, Strait Times is showing a slight increase of 0.02 percent. Taiwan’s market is trading down 0.43 percent at the level of 18,299.29. Whereas Hang Seng is seen with a gain of 0.37 percent at the level of 24,201.30. At the same time, Kospi is trading with a fall of 0.52 percent. On the other hand, Shanghai Composite is seen with a slight increase of 0.01 percent at 3,570.20 level.
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