Said that the index fell below the ’89-EMA’ for the first time since July 2020 on the weekly time frame chart, and this should be considered as a breakdown, which does not bode well for the bulls.
“On the other hand, Nifty 50 is placed at the previous breakout point of May 2021, which is around 15,400 – 15,300. The ‘RSI-Smoothed’ oscillator on the daily chart is showing a ‘positive divergence’ from the recent lows. High lows in prices and the oscillator. This situation usually occurs at the end of any downtrend. So, looking at the charts, we are clearly in two minds at the moment,” he said.
For the day, the index closed 67.10 points or 0.44 per cent lower at 15,293.50.
Gaurav Ratnaparkhi of Sharekhan said that the index made several intraday bounce attempts but could not cross the 15,400 level. He added that the overall structure suggests that the index may test lower levels in the coming sessions.
The short-term target zone is pegged at 15,100-15,000.
“At higher levels, 15,400-15,500 zone is expected to prevent any slight degree of bounce,” Ratnaparkhi said.
Independent analyst Manish Shah said a look at the weekly charts suggests that this was a week where sellers broke buyers’ backs and gained significant ground.
“Nifty has short term resistance at 15,370-154,00, a break above 15,400 would mean a rally to 15,700 – the area from where nifty broke. On the other hand, a break below 15,200 will take Nifty 50 down to 15,000-14,900. We will take every day as it comes. Volatility is expected to be high,” Shah said.
Angel Broking said the index outperformed the broader market and was comparatively resilient to Nifty 50. The index formed a bullish candle on the daily scale with support-based buying in lower areas, but formed a bearish candle on the weekly frame.
“As long as it stays below 33,000, weakness can be seen towards 32,250 and 32,000, while barriers are placed at 33,333 and 33,500,” he said.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)