Benchmarks snap five-day losing run

Motilal Oswal Wealth Management

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The Nifty index opened negative and continued steep selling pressure which made the index break 25,500 marks.

The second half of the session however saw a massive recovery from the support levels and it recouped around 350 points from the intraday low to cross 25,800 marks. It formed a bullish candle on the daily frame with a longer lower shadow indicating smart buying from the lower levels. It managed to close in gains of around 110 points but is still forming lower highs — lower lows from the last five sessions. Now it has to cross and hold above 25,800 for strength to rebuild towards 25,950 then 26,150 marks while support can be seen at 25,650 then 25,500 zones.