After showing a sustainable upside move on Monday, Indian stocks posted a range-bound upside momentum on Tuesday. In a consolidation, the NSE Nifty closed at 18,055, 52 points higher than Monday’s close, while the BSE Sensex surged 221 points to 60,616. The Nifty Bank index rose 94 points to close at 38,442.
According to stock market experts, the current market pattern suggests a range-bound market with a positive bias. The Nifty 50’s recent moves remain unchanged, with a positive chart pattern active with higher highs on the daily chart.
Speaking in NSE Nifty’s day trading guide today; Nagaraj Sheti, technical research analyst at HDFC Securities, said: “The market’s range-bound uptrend is likely to continue. Further volatility and range are likely after key overhead resistance around the 18200 level. Volatility for the next 1-2 trading days. Eventually, the market may break above mentioned resistance in the short term. Immediate support for NSE Nisfty lies at the 17,950 level.
Weakness in the market is expected in the near term; Deepak Jasani, head of retail research at HDFC Securities, said: “Nifty’s momentum has decelerated on January 11, with the advance decline ratio turning slightly negative. This may indicate that the trend is maturing, and Nifty Sharp upward correction in the near term. 17,945 to 18,109 could be the range for the near-term Nifty.”
Complete News Source : Mint