Tech View: Nifty50 forms a bearish candle; 20 day SMA is likely to be supportive


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A bearish candle that has a lower and upper shadow indicates a formation of high wave type candles. This pattern reflects market volatility. Nagaraj Shetti (Technical Research Analyst, Securities) stated that a formation such as this pattern following a decline or reasonable upside signal a trend reversal.

The index ended the day at 15,938.65. This was a decrease of 28 points or 0.18 percentage. This was the fourth consecutive session in which the index ended in the red.

“As Nifty50Although the key 20-day moving mean is at 15800, buying support might emerge, as the index has been down in the last four trading sessions. If the bulls pullback attempts are unsuccessful, however, it is possible for them to make a comeback, but they should not expect strength until it closes higher than 16,070. A close below 15800 can indicate the resumption or the greater downswing, with initial targets at 15,183,” Mazhar Mohammed of said.

Gaurav Ratnaparkhi, Sharekhan, stated that the index has seen a good pullback of between 15,200 and 16,200 over the past few weeks. The index is now approaching the lower end of a rising channel on the hourly chart & the 20-DMA, which is near 15,800-15,850, he said.

“Overall, the structure indicates that the index could break this short-term support zone and head lower towards 15500. On the other hand, 16,000-16,050 is expected to act as a near-term hurdle & any bounce towards that area can be taken as a fresh selling opportunity,” he said.

Nifty Bank
Kunal Shah, Senior Technical Analyst at

According to, the bank index continues to be under selling pressure at higher levels.

It was met with stiff resistance in the 35,200-35.300 zone. The lower-end support at 34,000. If broken, it will cause further selling pressure towards 34,000. “The index is stuck in a range of 34,400-35.300 zones. Any break on either side will cause trending moves,” he stated.

(Disclaimer) Recommendations and suggestions made by experts are their opinions. These views do not reflect those of Economic Times.


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