Closing Comments - 23rd Jan 2020

Closing Comments - 23rd Jan 2020

Nifty forms a bullish Candle as it took support near the 50DMA placed at 12080. Strength of near term trend reversal in favour of bulls can be expected on a close above 12225 level. In such a scenario this pull back rally can get extended into the zone of 12298/12361 kinds of level. Contrary to this a close below 12087 can resume the weakness in the index with targets placed around 11929 level.

After showing weakness in the last 3 sessions, Nifty shifted into a promising upmove today and closed the day decently higher. A long bull candle was formed today, that placed beside the negative candle of the last session. This pattern indicates an upside bounce in the market.

Nifty seems to have taken support of crucial gap of 9th Jan around 12130 &12044 level. The said opening upside gap remains partially filled. Short term trend of Nifty positive, further upmove could be considered as a pre-budget upside rally. The next upside levels to be watched at 12250/12300 in the next few sessions. Key support is placed at 12044 level.

Market is marginally up today due to the bounce back by banks, auto and mid & small caps after a mild consolidation during the week. We feel that a cautious trend will be maintained in the near term since a lot has been factored in the market about budget wish list and revival in earnings growth, while the start to Q3 result is below par.

A long bull candle was formed today, that placed beside the negative candle of the last session. This pattern indicates an upside bounce in the market.

All the sectoral indices ended higher. Midcap and smallcap gained 1 percent each.

 

Someshwar
Technical analyst
Equidius research



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