ITC has been in a strong uptrend since February last year and after a brief consolidation of 2 months, the stock looks ready for the next upmove.
Sunil Shankar Matkar
February 02, 2023 / 07:56 AM IST
Stock Market News
The Nifty50 on February 1 clocked healthy rally and moved closer to psychological 18,000 mark after the Finance Minister Nirmala Sitharaman delivered good budget with announcement of increase in capital expenditure by 33 percent to Rs 10 lakh crore for FY24 and tax benefits to rural economy & taxpayers, with unchanged capital gains tax, but the selling in Adani Group, life insurance and bank stocks in last couple of hours of trade wiped out all those gains of more than 300 points.
The index has formed bearish candle with long upper and lower shadow on the daily charts, which resembles High Wave kind of pattern formation, indicating the indecisiveness among buyers and sellers about further market trend.
But the Nifty50 strongly defended 200 DEMA (daily exponential moving average – 17,550) for fourth day in a row. Also it has taken a strong support at 200 DMA (daily moving average – 17,300). Further it has still respected long upward sloping support trendline adjoining lows of March 2020 and June 2022, while on the weekly scale, it has so far defended 50 WEMA (weekly exponential moving average – 17,400).
Overall it was a volatile session for the market and the index has been rangebound. Unless and until above support levels get decisively broken, there is no cause of worry, but volatility is likely to continue with resistance at 17,800-18,000 area, experts said.