The benchmark Nifty 50 needs to surpass and sustain above the 25,650–25,700 zone for a further upward journey toward 25,800, followed by 25,900.
If the Nifty 50 fails to defend the 25,400–25,350 zone, the 25,300–25,200 range cannot be ruled out in the next few sessions. However, holding above this zone could possibly take the index toward the 25,500–25,600 range.
The market is expected to consolidate with a negative bias. Below are some short-term trading ideas to consider.
If the Nifty 50 decisively breaks 25,400 in the upcoming sessions, a fall toward the 25,300–25,200 zone cannot be ruled out. However, holding above 25,400 could take the index toward the 25,500–25,600 zone.
Technically, the day’s market action indicates the formation of a ‘Bearish Engulfing’ pattern and a faster retracement of the previous three sessions’ range on the downside within a single session. This is not a good sign for the Nifty.
If the Nifty 50 sustains above 25,800, a further upmove toward 25,900–26,000 can be seen in the upcoming sessions. However, below this level, the index may consolidate with range-bound trading, with 25,650 acting as support.
The market needs to sustain above the downward-sloping trendline for a further upmove. Below are some short-term trading ideas to consider.
The continuation of the higher high–higher low formation, falling VIX, decisive breakout of the downward-sloping resistance trendline, and improving momentum indicators signalled a positive mood in the market.
The India VIX, which measures expected market volatility, cooled down further to 12.22, down 3.55 percent, signalling comfort for bulls. A decisive fall below the 12 zone can bring major comfort for bulls.
The Nifty 50 needs to surpass and sustain above the 25,750–25,800 zone for a move toward the 25,900–26,000 levels; however, the immediate key support is placed at 25,600.
The market may remain in positive territory amid volatility. Below are some short-term trading ideas to consider.
If Nifty 50 manages to close and sustain above 25,750, a rally toward the 25,900–26,000 levels cannot be ruled out in the upcoming sessions. However, 25,600 is expected to act as immediate support, followed by 25,500 as a crucial support level, according to experts.
The Bank Nifty continued to outperform, ending near the 61,200 mark with a gain of 0.37 percent, added Shah.
The Nifty 50 may see consolidation as long as it trades below 25,750, with support placed at 25,600–25,500. Climbing and sustaining above 25,750 could open the door for a sharp rally.
The market may see consolidation until it closes above the bearish gap of February 13. Below are some short-term trading ideas to consider.
The Nifty 50 needs to fill the bearish gap of February 13 by decisively surpassing and sustaining above 25,750 for a move towards 26,000. Until then, consolidation with range-bound trading may continue, with crucial support placed at 25,500–25,470, according to experts.
Weekly options data indicate that the Nifty 50 is expected to trade in the 25,500–26,000 range in the short term.
The daily and weekly RSI oscillator levels also suggest a sideways trending market, said Rahul Ghose.
If the bearish trend continues and the Nifty 50 decisively breaks Friday's low, a fall toward the 200 DMA (25,300) and the 200 EMA (25,200) cannot be ruled out. However, holding above the said low can increase the possibility of the index facing resistance at 25,500–25,700.
The market may see consolidation with range-bound trading, though the possibility of a rebound exists after Friday's steep fall. Below are some short-term trading ideas to consider.
According to experts, the Nifty 50 is expected to see consolidation with range-bound trading as long as it trades below the 26,000 mark. However, there is a possibility of a bounce back on Monday after Friday's sharp sell-off, with immediate resistance placed at 25,600–25,700.
Max Financial Services has delivered a horizontal trendline breakout on the daily chart, backed by steady follow-through and rising volumes, which strengthens the validity of the move said Sudeep Shah.
Use a covered call when you expect the stock to stay sideways or drift slightly higher.
If the Nifty 50 decisively breaks the 20-SMA (25,468) in the following session, bears are expected to gain further strength and may drive the benchmark index down toward the 25,300–25,200 zone (200-DMA/200-EMA) next week.
If the NIfty 50 decisively breaks the previous day's low of 25,750, a fall toward 25,650–25,600 (20- and 100-day EMAs) can't be ruled out. However, in case of a rebound, the 25,900–26,000 range may remain a key resistance zone.