After enjoying a four-day rally since its low of 10,628 on January 4, Nifty
witnessed a bout of profit-booking in the past two sessions. However, the
index has managed to hold above its rising trendline support area and also its 200-DEMA, which is around 10,700-levels.
For the upswing to resume, Nifty has to surpass its immediate peak of 10,870-10,925 levels. The benchmark NSE index ended the week down 0.25% at 10,795 on Friday.
Bank Nifty too has taken a breather in the past two days after finding
resistance at the upper trendline of the rising wedge pattern on the daily chart. The weekly chart also indicates that the index has formed a Doji pattern, which indicates uncertainty.
Crucial support for Bank Nifty is currently seen around 27,300-levels.
The Nifty FMCG index has been on a solid upmove and is now on the verge of breaking above its all-time high of 11,845. The index has managed to maintain its higher top-higher bottom structure on the daily chart, which indicates that FMCG stocks could see further upside in the near-term.