Nifty Forms Small Red Candle, But Base Shifting Higher

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Nifty Forms Small Red Candle, But Base Shifting Higher

The Indian stock market closed on a mixed note on Wednesday, with the benchmark Nifty forming a small red candle but the base shifting higher. The index closed at 18,025.25, down 0.12% from the previous day’s close.

The technical analysts said that the small red candle on the daily chart is a sign of profit-taking after the recent rally. However, the base of the index is shifting higher, which indicates that the bulls are still in control.

The immediate support for the Nifty is at 17,900, while the resistance is at 18,100. If the index breaks above 18,100, it could move up to 18,250. On the other hand, if the index breaks below 17,900, it could move down to 17,800.

For traders, the best strategy on Wednesday would be to wait for a clear direction before entering the market. If the index breaks above 18,100, then long positions can be initiated. On the other hand, if the index breaks below 17,900, then short positions can be initiated.

Here are some of the key factors that will be important for the stock market on Thursday:

  • The outcome of the US Federal Reserve meeting
  • The release of the US non-farm payrolls data
  • The trend in crude oil prices

Conclusion:

The Indian stock market is likely to remain volatile in the near term. However, the base of the index is shifting higher, which indicates that the bulls are still in control. Traders should wait for a clear direction before entering the market.

The BSE SENSEX stock market index of Bombay Stock Exchange ...

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