Market Outlook for 07 February 2024

Our markets have consolidated in a range in last couple of trading sessions, wherein the index corrected in Monday’s session and recovered those losses the next day. Tuesday’s up move was mainly led by the IT sector which led to an up move in the benchmark as well. Nifty ended the day above 21900 with gains of about three-fourth of a percent.

Nifty Today:

Nifty has recently formed a trend reversal pattern on the daily chart. However, the index has then consolidated in range and is yet to show any confirmation on a directional move. A ‘Double Top’ pattern which coincided with a ‘Shooting Star’ reversal pattern has made 21127 the immediate hurdle for the index and that needs to be surpassed to negate the pattern, a continuation of the trend. On the flipside, the 20 DEMA around 21640 is a crucial support for the index which if broken, then it could lead to a corrective phase in the index. As of now, one should wait for a breakout beyond the above mentioned levels to forecast a directional move in the index. Till then, one can look to trade with a stock specific approach. RBI Policy outcome which is scheduled on Thursday could be a trigger for a short term directional move and hence, traders are advised to keep a close watch on the same.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: