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Daily Technical View on Nifty

* Nifty snapped a five–day losing streak on October 28 from oversold charts.

* Nifty has formed a high wave type candle on October 28 after a fall hinting at start of an upward correction. Nifty could now rise to face resistance at 24567, while 24073-24135 band could offer support in the near term.

* Nifty is trading below 5,10, 20,50 and 100 DEMA, which indicates a down trend. 200 DEMA is placed near 23455

* Nifty has confirmed breakdown from bearish head and shoulder pattern on the daily chart. Right Shoulder top is placed at 25235 and unless that is taken out bearish pattern will remain valid.

* Previous Support zone of 24600-24650 is expected to act as a resistance for the short term. Positional resistance for the Nifty is placed at 25235.

* Broader markets have started weakening, which is not a good sign for the overall health of the market. However, after recent fall, Nifty Smallcap index has reached a long-term support of 40 Week EMA, which acted as a reversal point in the month of June 2024. Decisive close below 40 WEMA could ignite the selling pressure in the smallcap index.

* Developed and Emerging Markets are holding their uptrend till now. However, move below certain levels can also change the trend for them.

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