NIFTY 50 ANALYSIS :
As I discussed in my recent posts, the Nifty index was in highly oversold zone so there was a possibility of technical bounce and we got one today.
The green circles drawn on the chart shows resistance zone , i.e. 25000-25250 is a strong resistance zone for nifty 50 .
If we look at the cicles , Nifty returned 7 times from this resistance zone marked on the chart above. For starting fresh uptrend , daily close above 25250 is crucial.
If we analyse sectors of the index, Auto sector performed well today and IT most underperformed.
Today Nifty 50 formed red shooting star candle with a huge gap between 24673.65 and 24852.85, if means after huge gap-up opening the index tried to go higher but because of selling pressure it closed lower.