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Nifty Recovers: Auto, Energy, Finance Stocks Lead Rally
22 Dec
Summary
- Nifty ended a four-day losing streak on Friday.
- Strong buying seen in auto, energy, and financial stocks.
- Nifty broke out of a falling wedge pattern, signaling improved sentiment.
The Nifty concluded its four-day losing streak on Friday, buoyed by significant buying activity across auto, energy, and financial stocks. This recovery marks a notable improvement in market sentiment, further evidenced by the index's breakout from a falling wedge pattern on the daily chart.
Technical analysts observe that the Nifty has regained its 21-day EMA. Following support found near the 50-day EMA, the index rallied towards the 26,000 level. This level is now critical for future direction, with a decisive move above it potentially pushing the index towards 26,300.
Immediate support for the Nifty is established at 25,900, which is expected to act as the initial defense line. Investors will be keenly observing trading action around these key levels in the coming sessions to gauge the market's continued momentum.
