October 13, 2023 / 07:41 AM IST
Sensex Today | Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty opened flat and consolidated for most part of the day. It closed marginally in the red down 17 points. On the daily charts, the Nifty can be seen consolidating after a sharp rally of around 350 points in the previous two sessions. This consolidation is a healthy sign and shall set the floor for the next leg of the upmove.
The hourly momentum indicator has a negative crossover, which can lead to more consolidation and if the index slides to 19,750– 19,730, it should be used as a buying opportunity.
On the downside, the gap area formed in the range 19,718–19,757 is likely to act as a short-term support and on the upside, the rally can extend to 19,884–20,030.
The Bank Nifty also consolidated within a range and formed an Inside bar pattern. The hourly Bollinger bands are contracting. The hourly momentum indicator has a negative crossover and is still far from the equilibrium line. indicating that consolidation can continue over the next few sessions.
Dips towards 44,400– 44,300 should be used as a buying opportunity. Once this consolidation matures, we expect the positive momentum to resume on the upside till 45,050–45,350, which coincides with the 50 percent and 61.82 percent Fibonacci retracement level of the fall.
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