Nifty's Tug-of-War at 24,000: Big Move Coming Post-Holiday?
Nifty closed flat at 24,056 after giving up intraday gains. With a weekly Doji forming and a holiday tomorrow, all eyes are on next week's monthly expiry to decide July's direction.
Namaste traders! Today was a classic case of 'so close, yet so far'. Despite our Asian neighbours like Japan and South Korea flying high, our markets could not hold onto morning gains. Thanks to a sharp drop in crude oil prices, Auto stocks roared, but profit booking in IT and Metals pulled Nifty back down to close almost flat at 24,056.
If you look at the charts, the picture is getting very interesting. On the weekly chart, Nifty is making another 'Doji' candle. In simple words, a Doji means confusion—neither the buyers nor the sellers are in full control. The 1-hour chart clearly shows that every time we near the 24,250 resistance, sellers jump in and push the price down.
So, what is the market trying to tell us? Something big is cooking. We are resting right near the crucial 24,000 round number. The longer the market waits here without a strong upward rally, the higher the chances of a fall. Why? Because there is an unfilled gap waiting below at 23,620, and markets love to act like magnets to fill these gaps.
Tomorrow, Friday, the stock market is closed for Muharram. Enjoy the long weekend, because next week is going to be action-packed! Tuesday is the Nifty monthly expiry. Expect Monday and Tuesday to decide a clear trend for the month of July. Until bulls break out forcefully above 24,250, it is better to stay light and cautious.
- Nifty closed flat (+34 points) at 24,056 due to late profit booking.
- Auto sector shined today as crude oil prices fell below $74/bbl.
- Weekly charts show a Doji, indicating market indecision.
- Market is closed tomorrow (Muharram); next week's Tuesday expiry will be crucial.
Prepared by Nitish Goyal, SEBI Registered Research Analyst (INH000025993), under EquityMuni / Trading Baniya. For educational purposes only and not investment advice. Investment in securities market are subject to market risks; read all related documents carefully.