nifty50: Tech View: Nifty50 forms bearish candle; index may see consolidation ahead – The Economic Times
The Indian stock market indices, Sensex and Nifty 50, are expected to open weakly on October 10, influenced by mixed global cues and rising geopolitical tensions in the Middle East due to the Israel-Hamas conflict. The Gift Nifty was trading at around 19,648, slightly lower than the previous close of Nifty futures at 19,688.
On October 6, domestic benchmark indices closed higher with the Nifty 50 ending at 19,653.50, up by 108 points, and the Sensex closing at 65,995.63, up by 364 points. Technical analysis suggests a positive short-term trend for Nifty 50, with indications of a bullish hammer candle pattern forming at the support of the 20-week EMA.
Looking ahead, experts believe that maintaining support above 19,500 is crucial for the Nifty’s positive sentiment, with resistance levels expected at 19,750-19,800. A buying-on-dips strategy is recommended as long as the Nifty remains above 19,500.
Meanwhile, the Bank Nifty index closed at 44,361 on October 6, facing volatility. Technical analysis suggests a bearish trend in the banking sector, with the index consistently below crucial moving averages. A significant breakthrough above 44,550 could potentially push the index higher, while support is situated at 44,200.
Overall, market sentiment remains cautious due to global uncertainties and geopolitical tensions, with traders closely monitoring support and resistance levels for potential trading strategies.
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