Nifty makes history; fails to cross previous day’s high for 12 straight sessions
Nifty 50 has created history with the index failing to cross the previous day’s high for 12 consecutive trading sessions. The development, according to a note by Apurva Sheth, head of market perspectives and research at SAMCO Securities, comes after Securities and Exchange Board of India introduced the closing auction session (CAS).
“The previous longest streak in Nifty’s history was 9 consecutive sessions 2014, making the current 12 session streak the longest ever recorded. Interestingly, history suggests that such prolonged periods of suppressed upside have often created an interesting setup for the market ahead,” Sheth said.
CAS, made effective from August 3, is a 20-minute trading window from 3.15 pm to 3.35 pm used to determine the closing price of stocks through an auction mechanism. At present, it is applicable only to stocks in the futures and options segment.
Rebound on the cards?
While Nifty may be struggling to make new highs, history, Sheth added, suggests such extended periods of failing to cross the previous day’s high have often been followed by a meaningful upside. “Sometimes, the absence of a breakout is itself a signal,” he said.
The current set up, however, continues to exhibit a deteriorating price structure, analysts said, marked by a persistent lower-high formation on the technical charts and an inability to generate any meaningful recovery.
The immediate focus shifts to the psychological 24,000 mark for the Nifty 50 index, which analysts said, has emerged as the critical line of defence. A sustained break below this level, they add, could accelerate the corrective move towards 23,900–23,800, while the 24,138–24,268 zone is likely to cap any immediate recovery.
The 24040–24000 level on the index, said Hitesh Rathi, technical analyst – equity & derivatives at Angel One, remains the immediate and crucial support band, followed by a stronger cushion at 23900. On the upside, immediate resistance is likely to emerge in the 24200–24300 band, he said, followed by a stronger hurdle at 24400.
“There are still no clear signs of a trend reversal, and the broader near-term setup remains cautious. Any bounce from the current levels should therefore be monitored for signs of sustained buying interest rather than being treated as a confirmed reversal.
On the downside, the 24,000 psychological mark, according to Ponmudi R, CEO of Enrich Money, a SEBI – registered online trading and wealth tech firm, remains the crucial immediate support; a decisive break below this, he believes, could intensify selling pressure and drag the index toward the 23,800 zone.
“Momentum has also turned soft, with the daily relative strength index (RSI) slipping to 41.34, below its signal line, reinforcing the cautious near-term bias,” he added.
