buy or sell: The nifty index Restricted activity was displayed throughout the week, with fluctuations within the 23,500-24,200 range. However, lack of a decisive breakout above 24,200 levels led the index to re-test its support zone of 23,300-23,500. The week closed below this important support level, indicating potential weakness.
The week started with a gap-up opening above 24,000, with the index testing resistance at 24,250. However, the inability to secure a close above this level, resulting in the formation of a daily low-high pattern and persistent selling pressure below 24,000, resulted in a close below 23,500 on a weekly basis.
Looking at the January series, a sustained bullish trend would require a close above 24,250 points. This will pave the way for a move towards the 24,600-24,800 resistance zone. On the contrary, a close below 23,300-23,500 could take the index down to the next support levels of 22,500-22,800. Traders should remain cautious, closely monitoring the upward movements and closing patterns in the coming days.
The change of US President in mid-January may bring some volatility to the market. However, optimism over President-elect Donald Trump’s anticipated policies could create short-term positive sentiment in the market.
bank nifty performance
bank nifty index The week had a weak start, trading below the 51,000 mark and closing below the 50,500 support level. This weakness was confirmed when the index saw selling pressure, taking it towards the support zone of 48,500.
On a weekly note, Bank Nifty traded within 48,500-51,000 range. The persistent lower-low closing pattern indicates potential further downside. Immediate support for the index lies at 48,500, while resistance for the week is set at 50,500.
conclusion
Both Nifty and Bank Nifty indices closed below their respective monthly support zones, indicating possible weakness in the coming days. The level of 24,250 for Nifty and 50,500 for Bank Nifty remain important to initiate fresh long positions. Investors and traders should remain vigilant around these levels, as they will be important in determining future market direction.
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