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Nifty 50 rebounds above key levels after September expiry volatility
The index closed about 1.5% higher on Aug. 25, reclaiming 24,300 and moving above its 20-, 50-, and 100-day EMAs as it found support near its trendline.
The Nifty 50 ended August 25 higher, gaining 1.45% despite sharp volatility around the September series expiry, according to LiveMint Markets. After opening weak and dropping to an intraday low of 24,115.45, the index recovered in the second half of the session as support emerged near an upward-rising trendline.
LiveMint Markets said the expiry day was the first monthly expiry after the introduction of the Closing Auction Session regime, and the new mechanism helped the index reclaim the 24,300 mark into the close. On the daily chart, the index formed a large bullish candle that engulfed the prior three sessions, creating a bullish engulfing candlestick pattern.
The report noted that the Nifty 50 moved above its 20-, 50-, and 100-day EMAs, and it closed above the 38.2% Fibonacci retracement level of a decline spanning the previous 12 trading sessions. It also highlighted near-term technical levels, with resistance seen in the 24,370 to 24,400 zone.
Going forward, LiveMint Markets pointed to support between 24,197 and 24,208, where the 50-EMA and 100-EMA sit, and said a decisive breakdown below that range could extend losses toward 24,050 to 24,000. The outlet also flagged eClerx Services, citing a more than 50% rally over 14 trading sessions before consolidation and a pennant-like pattern that could lead to a breakout.