Nifty Bounces Off Key Support — Can 7-Week Losing Streak Finally End?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Nifty recovered above its 200-week moving average on Wednesday after dipping below it on Tuesday.
- ✓Sudeep Shah said, "The 22,400-22,600 zone now remains a crucial support area for the benchmark." While the index ended a seven-week losing streak, experts say it is too early to confirm a major trend reversal yet.
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- India Economy
Nifty 200-WMA In Focus: The Nifty's recovery above its key long-term moving average on Wednesday has brought the index back into focus after it briefly slipped below the crucial technical level in the previous session.
The index retested its 200-week moving average (200-WMA) at 22,606 on Tuesday, briefly dipped below it and subsequently recovered. The 22,400-22,600 zone now remains a crucial support area for the benchmark, according to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
Shah noted that the Nifty's current seven-week losing streak is rare, with only six such instances recorded since 1992. Historically, the end of such losing streaks has been followed by an average gain of around 11% in one month and 39% over 12 months. However, the historical sample is small and outcomes have varied considerably across episodes.
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