Nifty: Tech View: Nifty forms short bearish candle; 15,670 level remains key support

New Delhi: Nifty 50 fell for the fourth consecutive day on Wednesday. It formed a short bearish candle on the daily chart with a long upper wick indicating selling at higher levels.

Analysts said the index is respecting its support of 15,671 on a close basis and as long as it respects it, the possibility of some upside cannot be ruled out. If the level is breached, they see a move to support at the 15,400-300 level.

Pride RatnaparkhiNifty 50 traded near the swing lows seen in March and May this year, said technical research major Sharekhan. He added that the March low of 15,671 has not been broken based on the closing of the third consecutive session.

Ratnaparkhi said, “Thus there is a possibility of a short term bounce back. On the higher side, 15,800 is acting as a near term resistance for Nifty 50. If the index crosses this hurdle, it will move towards 16,000. Will be ready to take the leap.” ,

“However, a breach of March lows based on closing would negate this possibility. In that case, the index could drop to 15,400 and subsequently to 15,100.

Mazhar Mohamed of chartviewindia.in says it is important for the index to stay above 15,659 to prevent further downside.

In that scenario, he added that the bulls may attempt to bridge the bearish gap between the 15,886 and 16,172 levels. If the index breaks the support, the next support lies near the 15,300 level, Mohamed said.

For the day, the index ended 39.95 points or 0.25 per cent lower at 15,692.15.

Nagraj Shetty HDFC Securities Said that the short term trend of Nifty 50 remains weak. “Lack of strength at key support suggests that a false downside breakout or a leg downside is likely, before showing a sharp bounce from lows around 15,500 in the near term. Immediate resistance is placed at 15,780,” he said.


nifty Bank

Sandalwood

of Motilal Oswal Securities Told bank nifty Closed near its opening levels, thus forming a Doji-like candle on the daily scale. He added that the index negated the formation of its lower levels in the last ten sessions.

“Now till Nifty 50 stays below 33,750, weakness can be seen towards 33,000 and 32,500, while hurdles are placed at 33,750 and 34,000,” he said.


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