Following Monday’s loss, the Nifty Index recovered nearly all of its losses in Tuesday’s trade as the broader market recovered. The benchmark index gained in Tuesday’s breadth and ended the day gaining 71.20 points or 0.65 percent. Market breadth, too, improved as advances outnumbered the declines.
In Tuesday’s trade, the market chose to remain in consolidation mode rather than drifting further down. As we approach Wednesday’s trade, we expect such consolidation to continue and expect the market to trade within a broad range. However, chances of a ranged consolidation are higher, and we do not expect any major corrective decline to happen.
On Wednesday, Nifty index is likely to see immediate resistance at 11,050 and 11,080 levels, while supports should come in at 10,965 and 10,910. In the current context, the intraday strength of Nifty has got wider in terms of finding resistance and support areas.
The Relative Strength Index or RSI on the daily chart stood at 63.0381. It remains neutral and shows no divergence against the price. The daily MACD is bullish, as it trades above the signal line. Apart from of a white body, no significant formations were observed on the candles.
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Pattern analysis shows Nifty has temporarily stalled its rally and is now consolidating after a sharp move following an upward breakout. The index has successfully broken above the falling trend line pattern resistance.
Overall, we still feel it may be a while before the Nifty resumes its upward move and tests its previous high at 11,170. However, it continues to maintain a buoyant structure and shows no sign of any serious downsides. In the event of the broader market witnessing some correction again, Nifty may continue to trade in a range while remaining somewhat volatile.
In Tuesday’s trade, the market chose to remain in consolidation mode rather than drifting further down. As we approach Wednesday’s trade, we expect such consolidation to continue and expect the market to trade within a broad range. However, chances of a ranged consolidation are higher, and we do not expect any major corrective decline to happen.
On Wednesday, Nifty index is likely to see immediate resistance at 11,050 and 11,080 levels, while supports should come in at 10,965 and 10,910. In the current context, the intraday strength of Nifty has got wider in terms of finding resistance and support areas.
The Relative Strength Index or RSI on the daily chart stood at 63.0381. It remains neutral and shows no divergence against the price. The daily MACD is bullish, as it trades above the signal line. Apart from of a white body, no significant formations were observed on the candles.
Read Also:- how to earn by the stock market.
Pattern analysis shows Nifty has temporarily stalled its rally and is now consolidating after a sharp move following an upward breakout. The index has successfully broken above the falling trend line pattern resistance.
Overall, we still feel it may be a while before the Nifty resumes its upward move and tests its previous high at 11,170. However, it continues to maintain a buoyant structure and shows no sign of any serious downsides. In the event of the broader market witnessing some correction again, Nifty may continue to trade in a range while remaining somewhat volatile.
