Next Week on Dalal Street: Is the Nifty a bear trap? Why there may be a buying chance in this dip

The markets ultimately gave in to selling pressure after failing to break above key resistance levels, despite remaining in the green after a strong rally the week before. Over the previous five days, the Nifty remained under intense selling pressure.sessions and broke through important daily chart support levels. The Nifty traded in a broad 1,243-point range during the previous few days, and the range stayed broader on the expected lines.

Additionally, volatility skyrocketed; on a weekly basis, the India VIX jumped 15.48% higher to 15.07. The main index ended the week down 1,180.80 points (-4.77%) after a poor showing. The Nifty has displayed numerous technical events in recent days, emphasizing the significance of a few critical levels.20-week MA for a while; this emphasizes how crucial these levels are as major market resistance points. In the process, the Nifty dragged the resistance points lower and closed below the crucial 200-DMA, landing at 23,834. Additionally, the Nifty hasfinished at 23,530, just above the critical 50-week MA line. When this level was previously challenged, the markets had produced a spectacular recovery. The way the Nifty behaves in relation to the 50-week MA will dictate the course for the upcoming week as well as the short term.Due to the Wednesday Christmas holiday, the following week is shortened. Monday should be a mild start to the week; possible resistance levels would be 23,750 and 23,830. The lower-side supports are located at 23,500 and 23,285.