Tech View: Bears not done with Nifty assault, eye breach of 9,500

NEW DELHI: Nifty50 saw its biggest-ever fall in history on Thursday, cracking below the 9,600 mark in a brisk selloff. In the process, the index formed a Long Bearish Candle on the daily chart. Analysts said the index could now head for levels up to 8,900, if the 9,550-9,500 range is broken next session.

“Nifty50 index sliced through the 10,000 level with ease and recorded a multi-year low of 9,508. The market internals have deteriorated further. Incremental pain cannot be ruled out, as sentiment metrics are yet to turn around to signal capitulation. The next key levels to watch out for will be 9,350 and 8,900,” said Arun Kumar of Reliance Securities.

For the day, the index closed at 9,590, down 868 points or 8.30 per cent.


“The next meaningful support on the downside is placed between 8,900 and 9,100 levels. So far, Nifty has breaches important support levels easily on gap-downs. Investors should refrain from catching the falling knife,” said Manav Chopra, CMT, Head Research for Equity at Indiabulls Securities.

While no level appears to be sacrosanct around these levels, the 9,500 mark seems to be the last technical support one can bank on, said Mazhar Mohammad, Chief Strategist of Chartviewindia.in.

“If Nifty slips below 9,508 in the near term, then the next support we can expect is placed around 9,182 level,” he said.