Nifty record high : Nifty likely to remain sideways before getting back to record high

Nifty record high

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Nifty record high : The rising volatility also seems to have made the bulls uncomfortable, as the India VIX, the fear gauge, jumped 5.19 percent to 12.87, from 12.24 levels, rising for fifth consecutive day. The VIX surged 26 percent in five days.

The Nifty 50 failed to hold on to fresh record high levels and finally closed moderately in the red after wiping out 178 points from day’s high due to profit taking on April 30. Despite this profit booking, overall, the trend remains positive given the index traded above all key moving averages and maintaining higher highs, higher lows formation, but in immediate term, the index is likely to consolidate with immediate support at 22,500-22,400 levels and crucial support at 22,300, before getting back above the all-time high, experts said. Nifty record high

The Nifty 50 opened higher at 22,680 and climbed higher to hit a fresh record high of 22,783.35, but the last hour turned out to be weak as the index saw profit booking and finally settled 39 points lower at 22,605, forming bearish candlestick pattern on the daily charts. Nifty record high

Technically, this pattern signals presence of crucial overhead resistance in the market around 22,800 levels. “The larger degree of higher tops and bottoms is intact and Nifty is currently placed to form a new higher top of the pattern. We need reasonable weakness from here to call this as a top reversal pattern,” Nagaraj Shetti, senior technical research analyst, HDFC Securities said. Nifty record high

He feels further decisive upmove could only occur on a sustainable move above 22,850-22,900 levels. “Having placed at the hurdles, possibility of minor downward correction can’t be ruled out from the highs in the short term. Immediate support is at 22,400,” Nagaraj said. Nifty record high

The weekly options data indicated that 22,800 is expected to be key hurdle on the higher side for the Nifty 50, with support at 22,500-22,400 levels. Nifty record high

On the Call side, the maximum open interest was observed at 23,000 strike, followed by 22,800 and 22,900 strikes, with maximum writing at 22,800 strike, then 23,000 strike, while on the Put side, 22,500 strike owned the maximum open interest, followed by 22,000 and 22,400 strikes, with maximum writing at 22,700 strike, then 22,000 strike. Nifty record high

The Nifty 50 index, a major stock market index in India, might experience a period of consolidation before potentially reaching new highs again. Here’s a breakdown: Nifty record high

  • Sideways movement: This implies the Nifty might not experience significant upward or downward trends in the near future. The index may fluctuate within a specific range.
  • Record Highs: The news likely refers to the possibility of the Nifty eventually surpassing its previous all-time high. However, it suggests this might not happen immediately. Nifty record high

Reasons for sideways movement:

  • The article likely doesn’t mention specific reasons, but here are some general factors that could contribute:
    • Market correction: After a period of strong gains, the market might be taking a breather to adjust valuations.
    • Global uncertainties: Geopolitical tensions, interest rate hikes, or economic concerns could lead to investor caution.
    • Lack of strong triggers: There might not be any major positive news or events to propel the market significantly upwards. Nifty record high

Eventual return to record highs?

The news might imply optimism for the Nifty’s long-term prospects. Here are some reasons why:

  • Strong Indian economy: The Indian economy is projected to grow steadily, which could benefit the stock market.
  • Corporate earnings: If companies continue to report healthy profits, it could boost investor confidence and drive stock prices higher.
  • Increased liquidity: Continued flow of investments could provide the necessary fuel for the market to rise again. Nifty record high

Important to note:

  • This is just a prediction based on current market sentiment. The actual movement of the Nifty can be influenced by various unforeseen events.
  • It’s always wise to do your own research and consider professional advice before making any investment decisions. Nifty record high

For further information:

You can stay updated on the Nifty’s performance by following financial news websites or applications. Nifty record high

Bank Nifty

The Bank Nifty also traded higher and went closer to 50,000 mark by hitting a new record high of 49,975, but latter saw profit booking and closed 27 points lower at 49,397. The index has formed small-bodied bearish candlestick with long upper shadow on the daily charts, indicating selling pressure at higher levels. Nifty record high

“Although the index fell short of reaching the 50,000 mark, the overall sentiment remains bullish. Dips in the index should be seen as buying opportunities, especially with strong support noted around the 49,000 mark, where the highest open interest lies on the Put side,” Kunal Shah, senior technical & derivative analyst at LKP Securities said. Nifty record high

The rising volatility also seems to have made the bulls uncomfortable, as the India VIX, the fear gauge, jumped 5.19 percent to 12.87, from 12.24 levels, rising for fifth consecutive day. The VIX surged 26 percent in five days. Nifty record high

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Nifty record high

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