With the Nifty having declined around 1,000 points from the recent high above the 18,000 mark, buy-the-dip brigade was missing in action from Dalal Street as the index breached the 200-DMA on Monday. The psychologically-important level of 17,000 appears to be the key support level for the index, below which the weakness could intensify.
A long bear candle was formed on the daily chart, which chart readers say indicate a sharp down-trended movement in the market. Nifty’s biggest support will be at 16,907, while 17,166 could be the resistance in the near term.
Here’s what analysts said:
Om Mehra, Choice Broking
OI Data indicates that on the call side, the highest OI was at 17,300-17,400 strike prices, while on the put side, the highest OI was at 16,800 strike prices.
Rupak De, Senior Technical Analyst at
Nifty found support at the long-term moving average, 200-DMA, which may act as the “line of polarity” for the short term. The momentum indicator is in bearish crossover and falling. The trend for the short-term looks negative. However, further selling pressure may be seen only below 17,950, where the 200-DMA is currently placed. On the higher end, immediate resistance is visible at 17,300-17,350.
Nagaraj Shetti, Technical Research Analyst, Securities
After a decisive downside breakout of the immediate support of minor up trend line at 17,500 levels, Nifty is now sliding down to the crucial lower support around 16,800 levels as per the concept of change in polarity. Previously, this value area (16,800) witnessed many hits and misses in the past, and the underlying showed sharp follow-through movements post its upside and downside breakouts in this area. Hence, there is a higher possibility of an upside bounce from the lower support in the short term.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has broken the important support of 17,166 and now is on the verge of breaking 17,000. The levels of 16,947 and 16,794 are next supports for the index, while 17,166 could be the resistance in the near term.
Sandeep Bhardwaj, CEO,
It is a sell on rise market for the medium term, but this would provide an opportunity to accumulate quality stocks for the long run. We would emphasise largecaps over midcaps and are overweight on banks.
Banks are very well placed, with supportive monetary stance, healthy capitalisation, improved liability profile, diversified asset mix and healthy asset quality with strong coverage ratios. Tighter liquidity conditions, in an environment of rising loan demand, should in general, benefit banks on margins.
, and remain our top picks.
Ajit Mishra, VP – Research, Broking
With no respite on the global front and a resumption of selling from foreign investors, we expect markets to remain under pressure and test the 16,800-16,900 zone in Nifty. Select pockets from FMCG, pharma, and IT are showing resilience while the majority are reeling under pressure. Participants should align their positions accordingly.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
