Technical View | Nifty fails to hold crucial resistance of 18,200, forms bearish candle ahead of FO expiry


Going forward, the psychological 18,000 mark is expected to be crucial support for the index and 18,200 is likely to be key resistance area as surpassing it on a closing basis can take the index to 18,300-18,500 levels, experts say

Sunil Shankar Matkar

January 24, 2023 / 05:02 PM IST

Representative image

Representative image

The Nifty50 failed to hold on to crucial resistance of 18,200 due to profit booking at higher levels in the afternoon and finally closed flat with a negative bias while taking support at 50 DEMA (days exponential moving average – 18,099) for the second straight session on January 24, ahead of monthly expiry of futures amd options contracts tomorrow.

Overall, the rangebound trade has continued for almost a month now and the said range has gradually been shifting higher. Traders seem to be looking cautious ahead of important events – Union Budget and FOMC meet – next week.

The index has opened sharply higher and hit an intraday high of 18,201, but as the day progressed, it lost those gains and hit an intraday low of 18,079 in the afternoon. The index did show some recovery in late trade and closed flat at 18,118.30, down 0.20 point.

It has formed a bearish candle on the daily charts as the closing was lower than opening levels, but maintained a higher high higher low formation for the second straight session.

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