F&O Talk: Budget, earnings to drive Nifty’s next big move, breakdown likely in Nifty Bank, says Rahul Ghose of Hedged.in
Nifty closing lower despite relative strength in the broader market. The Nifty faced selling pressure throughout the session, ending the day at 23,203, while the volatility index (India VIX) rose by 1.82%, signaling increased market uncertainty.
Technically, the Nifty formed a hammer candle on the daily chart, suggesting some buying interest at lower levels but remains below its 250-day Simple Moving Average (SMA) of 23,560. This, coupled with a doji formation on the weekly chart, points to indecision. While the Nifty Midcap and Smallcap indices closed with modest gains, the overall market sentiment remains cautious.
Given the current market conditions, Analyst Rahul Ghose, Founder of Hedged.in, interacted with ET Markets regarding the outlook on Nifty and Bank Nifty, along with an index strategy for the upcoming week. Following are the edited excerpts from his chat:
Amid a sharp fall, the indices seemed to have taken a breather this week. However, the longer-term downtrend seems to be intact. What would you comment on this?
The recent pause in the market decline could be attributed to oversold conditions and short-term technical support. Levels of 23,000 and 22,300-22,500 are strong supports for the market, while on the upside, 24,000 is likely to act as a hurdle.
The broader trend remains bearish to sideways, primarily driven by concerns around global macroeconomic uncertainties, rising interest rates, and subdued domestic demand. Investors should approach the market in 2025 slightly cautiously, focusing on
