Our Terms & Conditions | Our Privacy Policy
Nifty50 on 17 December
Nifty50, the benchmark index of the Indian stock market, opened with a gap-down and traded negatively on Tuesday. It moved downward as the day progressed and closed near the day’s low. The market action during the day has formed another bearish candle in a row with a lower-top and lower-bottom price structure. All the sectors closed in the red, with major losses coming from the Financials, Energy, Auto, and Metal sectors. The advance-decline ratio was in favour of declines and settled around 1:3.
Technically, the index breached its 50-day moving average (DMA), which is currently placed around 24,386 and closed below it. Furthermore, it breached its 21-EMA and closed below it on Tuesday. The momentum indicator, the 14-period relative strength index (RSI), turned in a downward slope and fell below 48. Another technical indicator, moving average convergence/divergence (MACD), is still trending above its central line.
The index failed to hold above 24,700 and accelerated in a downward trajectory ahead of the FOMC meeting outcome. Moving ahead, Friday’s low (i.e., 24,180) is a critical level to watch in today’s trading session, and breaching below this level may turn more negative. The Indian market may take the next level of cues from the FOMC meeting outcome, which is due on Wednesday night. Hence, we expect another volatile trading session with a negative bias.
According to O’Neil’s methodology of market direction, the current market status is in a “rally attempt.” A rally attempt begins on the third day when the index closes higher off the most recent bottom after being in a correction (also known as downtrend).
Also Read: Direct retail inflows hit a three-year high at nearly ₹1 trillion
How Nifty Bank performed
Bank Nifty closed lower on Tuesday ahead of the Federal Reserve outcome, marginally holding above its early breakout level, i.e., the trendline connecting the high of 3 October to that of 26 November, 2024, as well as its 21-DMA. Yesterday, the index opened on a negative note at 53,394.10, remained in negative territory throughout the session, and closed at 52,822. As a result, the index formed a bearish candle with a lower-high and lower-low price structure on the daily chart.
The momentum indicator, RSI, is trending downward and is currently placed around 53, along with a positive MACD above the central line.
The index witnessed a “distribution day.” A distribution day occurs when a major market index, such as the Sensex, closes down 0.2% or more on higher volume than the previous day. Currently, the index has minor support around its earlier breakout level of 52,470–52,600. A failure to hold above 52,470 may extend the decline toward 52,900–52,700. On the flip side, 53,600–53,900 will continue to act as a strong hurdle.
According to O’Neil’s methodology of market direction, the current market status is in a “confirmed uptrend”. The uptrend begins with a follow-through day or when the index reclaims its previous uptrend high.
Also read | The bravado of retail investors: Buying the dip or skating on thin ice?
Two stocks to buy, recommended by MarketSmith India:
● Coromandel International: Current market price ₹ 1,817.15 | Buy at ₹ 1,790–1,830| Profit goal ₹2,100 | Stop loss ₹ 1,685| Timeframe 2–3 months
● Maithan Alloys: Current market price ₹ 1,169.50| Buy at ₹ 1,150–1,180 | Profit goal ₹ 1,320 | Stop loss ₹ 1,088 | Timeframe 2–3 month
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Also Read: Dr. Sebi tried to cool options fever. Did the medicine work?
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.