Tech View: Nifty50 drops below 16K, indicating weakness ahead

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On Wednesday, Nifty50 fell below its key support at 16,000 and formed large bearish candles on the daily charts. Analysts believe that the bears are ahead of the bulls and that some downside is possible.

Nagaraj Shetti stated that the long negative candle on the daily charts overlapped with the previous day’s negativ candle. Technical Research AnalystAt HDFC SecuritiesHe believes that the market action indicates continued downside momentum and insufficient strength to sustain highs.

The index closed the day at 15,966.65, a drop of 91.65 point or 0.57 percent.

Sharekhan’s Head of Technical Research Gaurav Ratnaparkhi stated that the index had been facing resistance from multiple technical parameters over the past few sessions.

“Nifty50 was therefore witnessing consolidation between 16,000-16.275. However, Wednesday’s close saw the index fall below the key support at 16,000 Accordingly, the bears are now in control of the short-term structures. Ratnaparkhi explained that the index is likely to test the lower limit of an increasing channel on the hourly charts, which is at close 15,800.”

According to the analyst, any Nifty50 rise towards 16,000-16.050 is likely to attract fresh sales.

Nifty Bank

Kunal Shah, Senior Technical & Derivative Analyst at , said the Nifty Bank breached the immediate support of 35,000 and witnessed continuous selling pressure throughout the day.

It is still in a sell mode. The next support at 34,400 will be tested on the downside. The upside resistance is at 35,000. Shah stated that traders should be aggressive in placing bets on both the long and short sides once this level has been removed.”

(Disclaimer) The opinions, recommendations, views and suggestions of the experts are theirs. These views do not reflect the opinions of Economic Times)

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