The Nifty 50 experienced a decline of 115 points, reaching a value of 19,428. The BSE Sensex was down by 365 points at 65,323. The Nifty, a benchmark index, has recently shown a shift from being dominated by bullish sentiment to being under the influence of bearish forces.
This change occurred following a period of consolidation. The Nifty’s performance appears to be exhibiting signs of fatigue. Furthermore, the movement of the Nifty has been influenced by a series of announcements and the anticipation of upcoming results.
Support and Resistance
The Nifty is currently finding support around 19400, and there’s a strong barrier around 19600 that’s hard to break. This is also confirmed by looking at the option writing data on the NSE.
The news and results from last week didn’t manage to lift the overall positive sentiment in the market. Some experts believe that in the short term, the Nifty might stay within a range of 18600 to 20600. These experts also hold the view that the market is currently overvalued.
A majority of sectors have faced difficulty in achieving a distinct breakout after extended periods of consolidation. As indicated by certain researchers, this could be a suitable time to exercise caution, secure some profits, refrain from engaging in risky trades, and instead focus on properly hedging investments.
Bank Nifty
The bearish trend persisted in the Bank Nifty as it recorded a decline of 343 points, reaching 44,199.The major support for bank nifty is around 43800 and major resistance level is 44500.
Conclusion
As we reviewed last week in our weekend mirror, the market has shown alignment with our research. Presently, there are several factors contributing to fluctuations in the market. Numerous companies are in the midst of presenting their quarterly results, and both domestic and international news are influencing market movements. The index has notably outperformed a majority of global indices. Following an extended bullish period, experiencing some correction is a typical occurrence. For traders, the option to secure profits or implement hedging strategies remains viable. Anticipate continued volatility in the market for the upcoming week.
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