Charts Signal Range-Bound Trading
Depending on the Fed’s decision, the market will react on Thursday and may come out of the range; Try to be in sideways and wait for either side of the breakout
NSE Nifty must close below 24,941 for negative implications. The 20DMA support rose to 25013, and the short-term 8EMA support is at 25,250pts. As long as this support is protected, expect Nifty to continue its upward journey
Before the US Federal Reserve’s meeting, the markets were nervous and traded in a tight range. NSE Nifty gained by 34.80 points or 0.14 per cent and closed at 25,418.55 points. All the sectoral indices closed flat. The Realty index is the top gainer with 0.61 per cent, followed by the Consumer Durable index with 0.49 per cent. The PSE is the top loser with 0.62 per cent, followed by the PSU Bank index with 0.58 per cent. The India VIX is up by 1.04 per cent to 12.59. The market breadth is negative as 1,665 declines and 1,121 advances. About 148 stocks hit a new 52-week high, and 105 stocks traded in the upper circuit. Bajaj Housing Finance, Tata Motors, PNGJL, and Ola Electric were the top trading counters on Tuesday in terms of value.
Another day of very tight rangebound trading has gone. After three days in 150 points range, the Nifty closed at almost last Thursday’s close. It formed a perfect Doji candle. During the day, all hourly candles are also smaller and indecisive. Like yesterday, all sectoral indices were traded in a lacklustre manner. Normally, once these tight bases continuation patterns. A breakout of these bases will be similar to the prior impulse moves. Only in case of a close below the impulse move low will be negative. In such a case, the Nifty must close below 24,941 for negative implications. The 20DMA support rose to 25,013, and the short-term 8EMA support
is at 25,250.
As long as this support is protected, expect Nifty to continue its upward journey. As the sideways price action, there are no major technical developments. The Federal Reserve meeting is scheduled for tomorrow. It is expected the interest cut cycle will begin from now. Other central banks will follow the Federal Reserve’s decision. Expect a range-bound trade on Wednesday, too. Depending on the Fed’s decision, the market will react on Thursday and may come out of the range. Try to be in sideways and wait for either side of the breakout.