Nifty Under Pressure, Support Seen at 9700
Nifty has entered the oversold territory but this may just be a pause in a bull market. The Nifty may find support around the 9,650-9,700 levels. Investors will be better suited to avoid stocks in the realty and infra sectors. In the coming weeks, on the downside 9,440 will be an important level to watch.
The Indian benchmark indices tumbled last week on the back of geopolitical tensions. The Nifty gave strong bearish candle for three days in a row. On Thursday, though the Nifty breached the 50-Day EMA around 9,780 on an intraday basis, it bounced back from the low of 9,776 and closed above 9,800. But, on Friday, the index opened gap down, well below 9,780 but managed to hold on to 9,700 mark. During the week, FIIs sold shares worth INR 2,615.9 crore and DIIs bought shares worth ₹ 4,498.43 crore. What is in store? After the sharp fall that we saw in the markets last week, one could
primarily driven by short covering. Any pull back towards the above-mentioned levels are likely to be used by traders for creating fresh short positions. The momentum oscillator RSI is at 36 level and trending downwards, suggesting that the short-term trend is down. MACD has also given a negative crossover in the daily charts. Bullish momentum will emerge and can be confirmed only if the Nifty successfully takes out 9,950 on the upside and make a base around there. However, if the Nifty breaches the support of 9,700, then we could slide further and move towards 9,565 in the short term. This is where the 100-Day EMA is placed. What could investors do? Currently the Market Pulse shows “Uptrend Under Pressure,” it’s not clear which direction the momentum will swing. So, JAY THAKKAR,
HEAD-RESEARCH OPERATIONS, WILLIAM O’NEIL INDIA CMT, AVP- TECHNICAL AND DERIVATIVES RESEARCH, ANAND RATHI SHARE AND STOCK BROKERS
The August series has started with a correction and it is expected to continue going forward as well. The
The Index is quite oversold in the short term and it has a strong support in the zone of 9650-9700 levels. We expect a bounce from this support zone and
2) 3) What could investors do?
Where are we?
Where are we?