Saturday, December 28, 2024

Tech View: Nifty forms bullish Harami Cross pattern on daily chart. Here are cues for Tuesday’s trade

Monday, December 23, 2024, 13:41
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Indian bench indices Sensex and Nifty ended their five-day losing streak on Monday, December 23, led by banks and FMCG stock. While the 30-stock BSE Sensex finished at 78,540.17, rising by just 498.58 points or 0.64%, the broader Nifty50 finished at 23,753.45, rising by 165.95 points or 0.7%. Commenting on the day’s action analyst Satish Chandra Aluri of Lemonn Markets Desk sees the bias remaining in favour of bears notwithstanding today’s gains. “Despite the gains, for benchmark Nifty 50, market closed below the crucial 23,800 and as such sentiment remains biased for downside with next support expected around the 23,500 level,” Aluri said.What should traders do? Here’s what analysts said:Rupak De, LKP SecuritiesThe Nifty index has formed a bullish Harami Cross pattern on the daily chart, indicating a potential rise in market optimism. Besides, the index closed above the 200-EMA. Going forward, a decisive move above 23,850 could trigger a smart recovery towards 24,000/24,400. On the downside, support is placed at 23,540; a breach below this level may lead to further weakness in the index.Osho Krishnan, Angel OneThe benchmark index initially exhibited modest recovery toward the 200-day SMA, but soon profit booking crippled in, leading to whipsaw moves. Eventually, the index managed to snap its losing streak and settled the day with gains. The placement of Nifty certainly portrays tentativeness with price closing below the significant pivot zone of 200 DSMA. Additionally, the market breadth remained tilted towards the bears, highlighting the prevailing bearish sentiment in the market. For now, Nifty hovers in between the 61.80 and 78.60 per cent of the Fibonacci retracement of the recent surge. On the levels front, 23,850-23,870 withholds a crucial hurdle, followed by the bearish gap of 24,000-24,150, and until these zones aren’t conquered, any bounce should be seen as an opportunity to lighten long bets. In contrast, 23,600-23,500 is likely to mitigate any shortcomings, while a breach could lead to further corrections towards 23,350 in the comparable period.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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