loading
loading
The Nifty 50 started Thursday’s session below the 23,200 level and formed an almost open low candle, indicating buying support from the opening levels. The index moved above the previous session’s high during the day. However, despite extending gains for the second consecutive session, the index remained below the 8-EMA. The price action resulted in the formation of a bullish-bodied candle with an upper shadow, indicating profit booking at higher levels. However, the index formed a higher high and a higher low compared with the previous trading session. The index tested the 50% retracement level of Tuesday’s trading range but failed to maintain the momentum and eventually closed below the 38.2% retracement level. The lower Bollinger Band continues to move downward, highlighting that selling pressure has not completely faded. A stabilisation or upward reversal in the lower Bollinger Band may indicate further scope for a pullback. The broader market structure showed improvement on Thursday, with both Nifty breadth and overall NSE market participation turning positive. The India VIX declined by 6.7%, suggesting that volatility reduced during the session. However, gains were restricted as key banking stocks, particularly HDFC Bank and ICICI Bank, limited the upside from the intraday high. The 14-period daily RSI continues to trade in the oversold region, while the MACD histogram suggests that negative momentum is gradually weakening. However, the inability of the index to close above the 50% retracement level indicates that the recovery attempt still lacks strong confirmation from a technical perspective. For the recovery to gain strength, the Nifty needs to close decisively above the 8-EMA placed at 23,418, supported by stronger volumes. The 14-period RSI moving above the 50 level would indicate improving momentum, while a move above 60 would provide further confirmation. On the downside, the 23,115–23,118 zone remains an important support area. As long as the index holds above this range, the current consolidation phase is likely to continue. The stock has witnessed a breakout from a four-week consolidation range and closed at a fresh 52-week high. It has retraced nearly 50% of the previous decline, indicating a recovery in buying interest. Over the last two trading sessions, volumes remained above average, supporting the breakout move. The stock’s Relative Strength Rating stands at 79, reflecting decent outperformance compared with the broader market. From a technical perspective, all major long-term moving averages are trending upward, indicating a sustained positive structure. The weekly Bollinger Bands continue to move higher, while the daily Bollinger Bands have started expanding, suggesting an increase in price momentum. The moving average ribbon remains in an uptrend. The daily MACD has generated a fresh bullish crossover, and the 14-period daily RSI has moved into the bullish zone, highlighting improving momentum. The Elder Impulse System has also formed strong bullish bars across all time frames, indicating strength in the ongoing trend. Overall, the stock has registered a bullish breakout from its consolidation phase. Sustaining above the ₹1,200 level would keep the positive setup intact, with potential upside towards ₹1,310, followed by ₹1,340. Traders can maintain a stop-loss at ₹1,140. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
document fetched 2026-09-18 02:56 · canonical https://livemint.com/market/stock-market-news/nifty-faces-a-crucial-test-on-friday-will-recovery-continue-or-support-levels-give-way-11789658462453.html