Thursday’s trade certainly caught momentum traders off guard, said Sameet Chavan of Angel One, noting that many traders would have carried over their longs after Tuesday’s sharp rebound.
“The day’s gap down opening was completely out of syllabus for most market participants, including us. In fact, all the pre-market strategies went for a toss as the Nifty50 opened convincingly below the psychological support of 16,000. Now, we are once again very much closer to the crucial support zone of 15,740-15,650,” Chavan said, who is hopeful of holding on to the support range.
For the day, the index closed at 15,809.40, down 430.90 points or 2.65 per cent.
“If Nifty50 slips below 15,670 level in the next session, the slide can initially continue towards 15,400 levels but the new downside target shall remain at 15,041. Nevertheless, as some technical oscillators on the weekly charts reached a deeply oversold zone, a sideways consolidation cannot be overruled,” said Mazhar Mohammad of Chartviewindia.in.
Independent analyst Manish Shah said that the index has found support at 15,750 a couple of times in the last 4-5 days, which makes the pattern a tweezers bottom.
“There is a chance that the Nifty50 will trade marginally below 15,750 before seeing a meaningful rally,” Shah said.
of said that the index has formed a bearish candle on daily scale and has negated its higher high of the last two sessions.
“Now, till it holds below 33,666, weakness could be seen towards 33,000 and 32,500 levels, whereas resistances for the index exist at 33,666 and 34,000 levels,” Taparia said.
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