The Indian stock market, represented by the NIFTY50 index, continued its upward trajectory for the 13th consecutive day. However, despite the positive start, the index faced some resistance and closed the day with a bearish candle.
Asian markets
The GIFT NIFTY, a derivative that tracks the NIFTY50, remained flat, indicating a subdued start for the Indian market today. Other Asian markets were trading mixed, with Japan's Nikkei 225 showing gains and Hong Kong's Hang Seng Index experiencing a slight decline.
NIFTY50 analysis
The NIFTY50 index formed a negative candle on the daily chart, suggesting a potential pause in its upward momentum. However, the broader trend remains bullish as long as the index holds above the 24,800 level.
The price action around the 25,150 area, where the index formed a bullish gap, is crucial to watch. A reversal pattern at this level could signal a buying opportunity. Conversely, a break below this level could indicate short-term weakness.
BANK NIFTY Analysis
The BANK NIFTY index also opened on a positive note but encountered resistance at its 50-day moving average. This led to a consolidation phase, resulting in a negative candle on the daily chart.
The index is currently trapped between its 50-day and 20-day moving averages, lacking follow-through momentum. Traders should closely monitor the support zone at 50,900 and the resistance zone at 51,500. A decisive break above or below this range will provide clear directional signals for share market investment.
Conclusion
While the overall market trend remains bullish, both the NIFTY50 and BANK NIFTY indices are facing resistance. Traders should exercise caution and carefully analyse the price action around key support and resistance levels. A decisive break above or below these levels will offer clearer trading opportunities.
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