The market may see consolidation as long as it trades below the midline of the Bollinger Bands. Below are some short-term trading ideas to consider.
Consolidation is expected to continue until the Nifty 50 convincingly surpasses the 25,900–26,000 hurdle.
Weekly options data continued to suggest that the 26,000 level is expected to remain a crucial resistance, with support seen in the range of 25,700–25,600.
If the Nifty 50 extends its gains, the 25,900–26,000 levels will be crucial to watch in the upcoming sessions. However, immediate support is placed at 25,700.
The market may extend its upward journey, but sustainability remains the key factor to watch. Below are some short-term trading ideas to consider.
The formation of a Piercing Line pattern raised hopes for a continuation of the uptrend; however, momentum indicators still need to align with the bulls for a sustained market uptrend.
Weekly options data suggest that 26,000 is expected to be a key resistance level for the Nifty 50, as it has the maximum Call open interest. On the downside, support is seen in the 25,700–25,500 range, where maximum Put open interest is placed.
Technically, Gold is extremely overbought on all time frames, said Rahul Ghose.
If the Nifty 50 sustains below 25,700, a fall below 25,600–25,500 cannot be ruled out in the upcoming sessions; however, holding above this level could raise the possibility of an upmove toward 25,900–26,000.
The consolidation is likely to continue following a 2.5 percent loss last week. Below are some short-term trading ideas to consider.
Experts expect bears to maintain the upper hand, with the possibility of further consolidation over the next few sessions.
Any meaningful recovery in Nifty 50 is only possible on sustained move above 25,750 (being the resistance from falling trendline) above which prices might try to test the resistance zone of 25,880-25,900.
Broader markets are also showing signs of strain. This widespread deterioration highlights a clear contraction in risk appetite, reinforcing the need for a cautious, defensive, and highly selective approach in the near term, Sudeep Shah said.
Price movements turn erratic before the budget. But one thing stays clear: option prices become expensive (Volatility increases). You can benefit from this by going long straddle, buying an ATM Call and Put.
The weekly options data suggested that 25,500 is expected to act as a crucial support, with strong resistance at 26,000.
BSE-listed companies have lost around Rs 15 lakh crore in market capitalisation over the last five sessions of selling.
Momentum indicators and a rising VIX signalled caution for bulls. The next support is placed at 25,700, and if Nifty 50 falls decisively below this level, a move toward 25,600–25,500 cannot be ruled out.
The market is expected to consolidate with range-bound trading after the sharp correction. Below are some short-term trading ideas to consider.
Stocks to Watch, 9 January: Stocks like Elecon Engineering Company, Bajaj Finserv, Bharat Forge, Astra Microwave Products, Waaree Renewable Technologies, Andhra Cements, Rail Vikas Nigam, Devyani International, Bharat Electronics, Bharat Heavy Electricals, Power Grid Corporation of India, and Highway Infrastructure will be in focus on January 9.
The rebound may be possible, but sustainability is the key to watch. If the index sustains below the 50 DEMA (25,900), the downward journey may extend toward 25,700, followed by 25,500. However, on the higher side, 26,000 is expected to act as resistance.
The weekly options data suggested that the Nifty 50 may trade in the 25,500–26,200 range in the short term.
If the Nifty 50 fails to defend the previous day’s low (26,068, which is slightly below the 20-day EMA), selling pressure may drag the index toward the crucial support of 26,000. On the upside, resistance is placed in the 26,200–26,250 zone.
The market is likely to consolidate further with a negative bias. Below are some short-term trading ideas to consider on January 8.
Consolidation with range-bound trade is expected to continue for a few more sessions before the index stabilises and rebounds.
Weekly options data suggest that the Nifty 50 is expected to face resistance near 26,200 in the near term, with support placed at 26,100–26,000 levels.