Nifty indicating a downtrend on short-term charts
On the weekly chart, the Nifty has formed a long bearish candle with long upper shadow which indicates every pullback action is witnessing selling pressure.
By ET Bureau |
AP
RAJESH PALVIYA HEAD, TECHNICAL & DERIVATIVES, AXIS SECURITIES
What is in store?
On the weekly chart, the Nifty has formed a long bearish candle with long upper shadow which indicates every pullback action is witnessing selling pressure. Currently, on short-term charts, the Nifty is indicating a down trend. It failed to cross 8,600 last week and witnessed selling pressure from higher levels. The index is likely to face stiff resistance around 8,500-8,600 zone and is expected to trade in range of 7,600-8,600 in the short term.
What should investors do?
7,500 levels would be an important support and any violation of this will cause further weakness. On the weekly chart, the index has important support at 8,000-7,800 levels, any break below can extend down-move towards 7,600-7,500. We expect the Nifty to trade in 7,600-8,600 for the coming weeks with a mix bias.
What is in store?
On the weekly chart, the Nifty has formed a long bearish candle with long upper shadow which indicates every pullback action is witnessing selling pressure. Currently, on short-term charts, the Nifty is indicating a down trend. It failed to cross 8,600 last week and witnessed selling pressure from higher levels. The index is likely to face stiff resistance around 8,500-8,600 zone and is expected to trade in range of 7,600-8,600 in the short term.
What should investors do?
7,500 levels would be an important support and any violation of this will cause further weakness. On the weekly chart, the index has important support at 8,000-7,800 levels, any break below can extend down-move towards 7,600-7,500. We expect the Nifty to trade in 7,600-8,600 for the coming weeks with a mix bias.
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