Nifty50 formed a Bullish candle on the Daily chart on Thursday. This was the second day that the index formed a lower high-low. The index found some support near the 15,600 level during the session. Analysts said a breakout of the 15,600-15,550 range could lead to further selling in the index. Immediate resistance is seen at the level of 15,769. Gaurav Ratnaparkhi of Sharekhan says Nifty is close to the recent swing low in the range of 15,600-15,560.
There is 20 DMA in this range. Thus, this is a major support range to watch out for. If the bulls manage to maintain this support area, the index could start the next move upwards. On the other hand, a breach would push the index towards the level of 15,400
Nifty has marked the zone of 15,850-15,900 as an intermediate head. Unless this zone is cleared out, the markets will continue to face selling pressure at the current and higher levels. The volatility increased slightly. India VIX climbed 2.84% to 15.2875. Market breadth remained weak with 38 out of 50 stocks falling in Nifty.
The highest amount of call writing and OI growth was witnessed at the 15,700 level. The daily RSI is 61.14. It has marked a new 14-period low, which is bearish. However, the RSI is neutral and shows no divergence against the price.
US technology stocks rose on Thursday on optimism around a bullish economic recovery, though an unexpectedly buoyant message from the Federal Reserve on monetary policy kept the S&P 500 and Dow indexes subdued. At 09:00 pm. IST, the technology-heavy Nasdaq Composite was up 1.04%, while the blue-chip Dow Jones Industrial Average was down 0.55% and the S&P 500 was flat.
European shares fell from record highs on Thursday, tracking declines on Wall Street after the Federal Reserve surprised investors in a strange tone to its policy, while CureVac fell 40% after failing a critical COVID-19 vaccine trial. drowned out. At 9:00 pm IST, the pan-European STOXX 600 index was down 0.13%, breaking a nine-day gain, after the Fed said it could start raising interest rates a year earlier than expected.