Hi there,
Overview Fundamentals:
The Nifty 50 index encountered resistance at 19,850, leading to a significant intraday decline. Despite a mixed day in Indian shares, a rally sparked by positive U.S. interest rate news and falling oil prices was tempered by a drop in financial stocks due to tightened consumer lending rules.
Market Movement:
After a two-day upward trend, the markets took a pause and closed slightly lower. The Nifty index initially declined, traded within a narrow range, and eventually settled at 19,731.80. Sectoral performance varied, with gains in pharma, FMCG, and auto, while banking and energy sectors lagged. Broader indices maintained a flat trajectory.
Technical Analysis:
Chart analysis indicates a potential minor correction for Nifty, with an upward move towards the supply zone, provided the low remains above the 50 EMA at 19,400. However, caution is advised due to weekly bearish signals that may prompt a reversal, potentially leading to a drop to the demand zone with a target price of 19,289.65.
Outlook:
The underperformance of the banking sector is impacting sentiment, but the strength in other sectors is offsetting the overall impact. Looking forward, global market dynamics will be key determinants.
Overview Fundamentals:
The Nifty 50 index encountered resistance at 19,850, leading to a significant intraday decline. Despite a mixed day in Indian shares, a rally sparked by positive U.S. interest rate news and falling oil prices was tempered by a drop in financial stocks due to tightened consumer lending rules.
Market Movement:
After a two-day upward trend, the markets took a pause and closed slightly lower. The Nifty index initially declined, traded within a narrow range, and eventually settled at 19,731.80. Sectoral performance varied, with gains in pharma, FMCG, and auto, while banking and energy sectors lagged. Broader indices maintained a flat trajectory.
Technical Analysis:
Chart analysis indicates a potential minor correction for Nifty, with an upward move towards the supply zone, provided the low remains above the 50 EMA at 19,400. However, caution is advised due to weekly bearish signals that may prompt a reversal, potentially leading to a drop to the demand zone with a target price of 19,289.65.
Outlook:
The underperformance of the banking sector is impacting sentiment, but the strength in other sectors is offsetting the overall impact. Looking forward, global market dynamics will be key determinants.