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The technical charts indicate some support at 15,670, followed by 15,400 levels, but analysts do not rule out a re-review of the sub-15,000 level. Fundamentally, while analysts believe it is pointless to forecast a downside at this level, given the global headwinds, around 15,000 levels are attractive on the index, with analysts advising investors to stay light for now. It will take
“Maybe another 4-5 per cent, if the indices fall, we can start munching because we don’t know where the exact bottom will be. What we need is to start buying when we feel the downside Chances are less than upside potential. It may come closer to 15,000 level on Nifty 50,” said Sandeep Sabharwal,
Askandipsabharwal.com,
CEO Sandeep Bhardwaj said there is a huge gap between the inflation rate of 8.6 per cent in May and the 10-year US bond yield, which stands at 3.187.
“To bridge this huge 5.4 percent gap between the two, the Fed will have to control inflation by raising interest rates. If 10-year bond yields in the US rise to 5 percent, we’ll see that for the balance sheet.” Getting starchy. Many companies. The yield on the US 2-year Treasury has risen over 3 percent and is now trading at the highest level since 2007, and its gap with the 10-year yield is now less than 5 bps Which is making the case for a sharp slowdown in equities,” Bharadwaj said.
Bhardwaj said that almost all recessions in the US over the past 100 years have been preceded by a rise in the dollar, rising interest rates and rising crude oil prices.
“This time too, the scenario is the same. If we look at the technical chart, Nifty 50 has given a breakout from a bearish flagging pattern on the daily time frame and has come close to the crucial support of 15,670 levels. If the index breaks out At this level, it will continue to follow a low-high and low-low pattern on the weekly time frame, indicating a bearish bias for the medium term.We expect a breakout of the support towards the 15,000 level. level,” Bharadwaj said.
From a low of 15,684, the index recovered some lost ground and was trading down 460.85 points or 2.84 per cent at 15,740.95 on Monday afternoon. The 15,000 level is still 4.8 per cent away from Monday’s intraday level of 15,754.55.
Abhishek Chinchalkar of FYERS said that Nifty 50 is back in the 15,670-15,750 support zone.
“This is an important support area for the index, as it has remained firmly in place for the past three months. A break and stability below this zone would open the door for an extension of the downside towards the 15,000 level. On the upside, now 16,000. turns into immediate resistance for Nifty 50,” he said.
Shrikant Chauhan of Kotak Securities said that Nifty 50 falling below 15,700 will be a big downside for the market.
“In such a situation, Nifty 50 will fall to 15,500/15,400 in the short term,” he said. Also, it will remain under continued selling pressure due to rejection of long term support levels.
Pritesh Mehta, Lead Analyst, Institutional Equities at Yes Securities, said the presence of bearish anchor columns, high polls and negative follow-through from April 2022 has led to a sharp decline in Nifty 50.
“A bearish turtle breakout on the P&F (point-and-figure) chart indicates further weakness in the near term with a vertical target seen around 15,350. Our customized Top 10 nifty The index has turned upside down, trading below the 200-DMA. We expect it to trade below the May 2022 lows, indicating weakness among the index giants. Even the inter-market set-up has gone haywire,” Mehta said.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)
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