Nifty losses shine, today also it broke 17000 - 16950 levels which was considered to be the strong support. Nifty showed decent recovery but failed to hold those gains amid volatility and settled flat with a negative bias. However, the index has defended not only the psychological 17,000 mark but 200-day simple moving average (16,990), can act as a support in the near term, while the decisive closing above 17,200 can bring the bulls back on track. This being expiry week, carry forward adjustment may inject volatility higher level.
Nifty formed a bearish candlestick pattern on the daily charts as the closing was lower than the opening levels. It has also seen lower low and lower high formation for the fifth consecutive day.
Nifty opened the gap up by around 100 points at 17,111 and touched the high of 17,176 but failed to hold . The index has taken support at 16,950 levels and closed with 9 points loss at 17,007.
"Lower top formation intraday charts and bearish candle on daily charts indicating continuation of weakness in the near term. However, momentum indicators suggest a strong possibility of a pullback rally from the current levels.
Bearish sentiment in the market is still intact and a fresh pullback rally possible if the index succeeds to trade above 200 days moving average , it could retest the level of 17,150-17,200...
Recession fear hit the global market and our market also followed. On 30 th RBI meeting may hike repo rate. Impact of the same seen on our market. All banking stocks were under pressure. Finance Nifty too weak... 50- 75 basis points may be hike. Financial commetry wil be important for further move...
Signing off for day.. 💐