The market closed on a negative note on November 20, but remained within the broad range of 19,600-19,875. According to experts, as long as the support level of 19,600-19,550 holds, the ongoing consolidation is likely to break out on the higher side with resistance at 19,850-19,900.
The Nifty50 declined 38 points to 19,694, forming a small bearish candlestick pattern on the daily charts. Jatin Gedia, a technical research analyst, highlighted that the Nifty is approaching a crucial support zone of 19,650 – 19,600, where multiple support parameters are located. He expects the Nifty to hold on to this support, with a positive crossover and the equilibrium line indicating a potential upward movement.
Kunal Shah, a senior technical & derivative analyst, believes that despite the consolidation, the broader picture remains bullish, with major support identified in the 19,550-19,500 zone.
The Nifty Midcap 100 index rose by 0.11 percent, while the Smallcap 100 index fell by 0.07 percent. The breadth of the market slightly favored bears on the NSE.
What is a bearish candlestick pattern?
A bearish candlestick pattern is a technical analysis pattern that indicates a potential downward movement in the price of an asset. It is characterized by a long upper shadow and a small body, suggesting that sellers are in control.
What does support and resistance mean?
Support and resistance levels are psychological price levels that an asset tends to bounce off, preventing it from moving in a certain direction. Support is a level where buyers enter the market and prevent further price declines, while resistance is a level where sellers enter the market and prevent further price increases.
What is the Nifty?
The Nifty is a stock market index in India that represents the performance of the 50 largest and most liquid Indian companies listed on the National Stock Exchange (NSE). It is commonly used as a benchmark for the Indian equity market.
What are pivot points?
Pivot points are technical indicators used to identify potential support and resistance levels in the market. They are calculated using the previous day’s high, low, and close prices and can help traders determine entry and exit points for trades.