Nifty 50 At Crucial Turning Point On Expiry Day: Trade Setup For January 13
The benchmark Nifty 50 remains at a cautious juncture but buy on dips and sell on rallies would be the ideal strategy for day traders, according to analysts. On the charts, the index signals buying demand at lower levels from the extreme oversold territory after 900 points decline in just five sessions.
From a technical standpoint, the 50-Double Exponential Moving Average at 25,900 is expected to serve as an intermediate hurdle, followed by a strong resistance level at the 26,000 mark, which coincides with the 20-DEMA, Osho Krishan, chief manager of technical and derivative research at Angel One, said.
A decisive breakthrough above these levels could only reignite bullish sentiment in the upcoming session. On the downside, 25,650 and 25,600 would act as key support zones, while 25,900-25,950 could serve as immediate resistance areas for the bulls, said Shrikant Chouhan, head of equity research at Kotak Securities.
Weekly Expiry Day: What to Expect
Tuesday will be the weekly expiry for the Nifty futures contract. Analysts expect the Nifty Bank index to extend the consolidation within the 58,700–60,000 range. The key short-term support zone lies at 59,000–58,700 which represents a confluence of the 50-day exponential moving average and the previous month’s low, making it a crucial level to watch, according to Bajaj Broking.
Indian equity markets closed higher on Monday, after a rebound from intraday lows driven by improved investor confidence following favorable comments from the new US Ambassador on a potential trade deal ahead of upcoming negotiations. The BSE Sensex gained 301.93 points, or 0.36%, to settle at 83,878.17, while the Nifty 50 advanced 106.95 points, or 0.42%, to 25,790.25.
In the broader market, midcap stocks ended flat, while the small-cap index slipped 0.5%. Foreign Portfolio Investors continued their pullout from Indian equities for the sixth consecutive session, selling a net Rs 3,638.4 crore, as per provisional data from the National Stock Exchange.
Investing in the Indian Stock Market: A Guide for Beginners
For those new to investing in the Indian stock market, it’s essential to understand the basics of stock market investing and how to navigate the market. This includes understanding technical analysis and fundamental analysis, as well as staying up-to-date with the latest stock market news.
Top Stocks to Watch: Nifty 50 Constituents
The Nifty 50 is a diversified index comprising 50 of the largest and most liquid stocks in the Indian market. Some of the top stocks to watch include Hindustan Unilever, ICICI Bank, and Reliance Industries.
Conclusion: Nifty 50 at a Crucial Turning Point
In conclusion, the Nifty 50 remains at a cautious juncture, with buy on dips and sell on rallies being the ideal strategy for day traders. With the weekly expiry day approaching, investors should be prepared for increased volatility in the market. Stay ahead of the market by staying informed with the latest Nifty 50 news and analysis.
