On January 27, the market closed with a fall of 1 percent, losing all the gains of the previous day. Yesterday was also the expiry day of January derivatives contract. Nifty IT index saw the biggest (3.55 per cent) fall in yesterday’s trade. After this, there was a decline of 1-2 percent in FMCG, Pharma, Realty. In yesterday’s trade, there was heavy selling in small-medium stocks too. Nifty Midcap was down 1.05 per cent and the Smallcap index was down 0.73 per cent yesterday.
Continuous selling of FII, Hawkes commentary by US Fed and rising crude oil prices showed their impact on the market sentiments. BSE Sensex closed 581.21 points down at 57,276.94 in yesterday’s trade. So Nifty50 index fell 167.80 points to close at 17,110.20 level. Yesterday’s closing was above the opening level, due to which Nifty formed a bullish candle on the daily chart.
Vidnyan Sawant of GEPL Capital Says that the Nifty Daily Chart’s Lower Top Lower Bottom Formation is maintaining. However, it has managed to stay above 17,000 for 3 consecutive trading sessions. It has formed a Piercing Line and Hammer candle pattern like a reversal candle pattern on the daily chart. It is giving some indication of bottom out in the short and medium term. Along with this, the RSI indicator is showing below 40 on the lower time frame. However, it is showing price momentum divergence.
He further said that Nifty is showing resistance at 17,450 and 17,776 and support at 16,836. The index is showing early signs of a bottom out near 17,000. In this, pull back can be seen towards 17,450-17,776. On the other hand, if Nifty slips below 16,836, then we can see it going towards 16,600 – 16,410.
Here we are giving you some such data, on the basis of which it will be easy for you to catch profitable deals. Please note 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 16,923.83 and after that the second support is located at 16,737.47. If the index turns upwards, then it may face resistance at 17,239.53 then 17,368.87.
The first support for Nifty Bank is located at 37,280.33 and after that the second support is located at 36,578.56. If the index turns upwards, then it may face resistance at 38,415.73 then 38,849.37.
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