Ajit Mishra, SVP – Technical Research, Religare BrokingThe pace of decline shows more pain ahead and the 20,800-21,000 zone may offer some support. Earlier, we were seeing private banking majors facing the heat but it is now cascading to the other sectors and also to the broader indices. We thus recommend keeping a check on leveraged positions and maintaining shorts too.
Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy
On the technical charts, Nifty formed a huge bearish engulfing candlestick. It broke the crucial support of 21,300 with a head and shoulder pattern. Now the next support lies at 21,000 coinciding with the 50-day moving average (DMA). If broken, Nifty may see a big correction as there lies no major support.Rupak De, Senior Technical Analyst, LKP SecuritiesA few days of consolidation have led to a decline, with Nifty slipping below the lower end of the recent consolidation range. The bearish sentiment appears to be strengthening as Nifty closed at its lowest points on multiple days. Weakness may persist in the short term, with support at 21,200; below this level, the index could potentially decline towards 21,000 and beyond. Looking ahead, the market may continue to be a “sell on rise” scenario as long as it remains below 21,500.(You can now subscribe to our ETMarkets WhatsApp channel)
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