Osho Krishan, Chief Manager -Technical and Derivative research at Angel One
The Indian equity markets commenced the month of December on a positive trajectory, bolstered by robust economic growth and favorable global indicators. The benchmark index scaled to record highs but, in the absence of sustained purchaseing interest, gradually corrected, eroding its initial gains and eventually sconcludeing it into negative territory. Amidst a modest stability at lower levels, the Nifty50 index concluded the session on a subdued note, slightly below the 26200 zone.
The formation of an open-high candlestick pattern for the benchmark index at its all-time highs presents a challenging situation, indicating a potential pautilize in momentum. Nevertheless, from a technical standpoint, the primary perspective remains favorable, as any subsequent market dips are likely to be interpreted positively by market participants.
On the levels front, the support levels for the index seem to be firmly anchored within the range of 26100-26000, indicating a robust foundation for potential upward relocatement. Additionally, the pivotal support level identified from the previous week, situated at 25850, serves as a critical structural base that reinforces investor confidence. On the flipside, 26300-26325 is likely to act as a sturdy hurdle, presenting a significant challenge to upward momentum.
Should the index manage to sustain its trajectory beyond this resistance zone, it could pave the way for an exciting new phase of rally, venturing into uncharted territory in the near future.
Going forward, we remain optimistic about the domestic market and expect any dips to benefit the Bulls. Additionally, sectoral rotation is evident, and traders should be vigilant on thematic relocaters to gain an edge in the markets.
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