📷 Image Credits: Moneycontrol
The Nifty 50 experienced a halt in its four-day winning streak on June 28, as investors decided to book profits on the first day of the July series. Despite nearing the 24,200 mark during the day, the index managed to close above the crucial 24,000 level. With the market in uncharted territory, experts predict continued consolidation in the near future, citing support at 23,800 before potentially moving towards 24,500 levels.
Senior Technical Research Analyst at HDFC Securities, Nagaraj Shetti, highlighted that a bearish candlestick pattern with an upper shadow was formed on the daily charts, indicating selling pressure at higher levels. He suggested that a dip below the immediate support level of 23,800 could confirm a short-term top reversal pattern. However, a sustained move above 24,200 might negate this bearish formation, presenting a buying opportunity.
The options data indicated that the 24,000 level is crucial for the Nifty 50’s future direction, with resistance likely at the 24,100-24,200 levels and support at 23,800. In the midst of bullish momentum, experts caution that overbought conditions across major time frames may signal potential correction signs in the near term, despite the market being in a strong bull run.
Bank Nifty also faced selling pressure, forming a bearish candlestick pattern on the daily charts with a correction of 469 points. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted the potential for follow-up selling to continue the downward trend. However, he noted that the index might enter a consolidation range without further selling pressure. The immediate support for Bank Nifty is seen at 52,000, with resistance at 52,700-53,000.
Despite the market volatility, the fear index, India VIX, dropped to 13.8, providing some comfort to the bulls. As investors navigate through uncertain market conditions, staying cautious and vigilant in decision-making is advised to navigate potential market swings.
