NIFTY50 holds crucial support, inside bar signals wait and watch
Upstox
2 min read • Updated: March 15, 2024, 7:11 PM
Summary
The NIFTY 50 is consolidating near a key support level of 50-day moving average (DMA), but with a negative bias. Experts believe if the index manages to close above 22,250, it could signal a potential trend reversal in favour of the bulls.
The markets ended the lacklustre trading session in the red after mutual funds released their liquidity stress test results as per SEBI guidelines. The NIFTY50 lost 0.5% to close at 22,023 while the SENSEX slipped 0.6% to close at 72,643.
The border markets ended mixed. The NIFTY Midcap 100 slipped 0.4% and the Smallcap 100 gained 0.3%. Sectorally, Oil & Gas (-1.98%) led the declines followed by Auto (-1.57%) and Pharma (-0.95%). Metals (+0.03%) and FMCG (+0.02%) offered some relief, closing flat.
The NIFTY 50 started the day lower and remained near its lows, reflecting the bearish sentiment. Although the index attempted a brief rally of over 100 points, it came under selling pressure at higher levels. In addition, the formation of an inside bar on the daily chart indicates the indecisiveness of the participants.
According to the experts, the NIFTY 50 is consolidating near a key support level of 50-DMA, but with a negative bias. A break below this level could signal further declines. On the other hand, if the index manages to close above 22,250, it could signal a potential trend reversal in favour of the bulls. Overall, the NIFTY50 is at a critical juncture. A decisive break above or below the current consolidation zone will provide a clearer direction for the upcoming trend.
Key highlights of the day:
⛽Oil marketing companies BPCL and HPCL fell 4% and 6% respectively after the government announced a ₹2 per litre cut in petrol and diesel prices.
💊Aurobindo Pharma (-1%) was in the spotlight after the US FDA cited lapses in procedures and cleanliness at the Telangana unit of its subsidiary.
🖥️L&T Technology Services gained over 2% after winning an ₹800 crore cyber security contract from the Maharashtra government.
🔥Biocon cracked 5% after Eris Lifesciences acquired the domestic business of Biocon Biologics for ₹1,242 crore.
Top traded futures contracts
Top traded stock options contracts
4 trading insights from NIFTY 200🔍
📉Open = High (Bear power): HCL Tech, Axis Bank, Tech Mahindra, Hindustan Petroleum and Bharat Electronics
📈Open = Low (Bull power): Bajaj Finserv, Aditya Birla Fashion and Retail, Info Edge and ICICI Lombard
🏗️Fresh 52 week-high: Bharti Airtel and Colgate-Palmolive
⚠️Fresh 52 week-low: Zee Entertainment
And that's it for today's F&O recap! Get the full scoop on market trends and curated scans at https://pro.upstox.com/
See you on Monday!