An eventual break below 16,000 will then pave the way for our long-awaited fall to 15,000-14,500. In that case, the Nifty can test 16,000 initially. A decisive weekly close below 16.400 will confirm the double-top pattern on the chart. The fall below the 200-DMA and the case of a double-top formation strengthened the bearish case. We retain our bearish medium-term view intact. But that is unlikely as seen from the price action on the charts. Nifty must rise past 17,200 decisively in order to ease the downside pressure and turn the outlook positive. In case Nifty breaks above 17,000, an extended rise to 17,100-17,200 is possible and not more than that. As such we expect the Nifty to reverse lower again and fall-back to 16,400-16.200 levels in the near term. The chances are high for the upside to be capped anywhere in the 16,800-17,000 region. Cluster of resistances are poised in between 16,800 and 17,000. The week ahead: The break below the 200-DMA last week strengthens the bearish case for Nifty. Nifty tumbled to a low of 16.203 and recovered on Friday to close the week at 16.658.4, down 3.58 per cent. But that was short-lived as Russia’s attack on Ukraine on Thursday dragged the index sharply below the 200-DMA. Nifty made a strong bounce from the low of 16,843 on Tuesday. The key 200-Day Moving Average (DMA) support at 16,905 held well in the initial part of the week. The FPIs have pulled out $8.86 billion from Indian equities so far this year. This totals to an outflow of $4.153 billion for the month of February so far. The BSE Capital goods, BSE Auto, BSE PSU indices were all down over 4 per cent each.įoreign Portfolio Investors (FPIs) continue to sell Indian equities. The BSE Oil and Gas index tumbled the most by 6.54 per cent. Indian markets are closed on Tuesday on account of Mahashivratri.Īll sectoral indices closed in the red. As such, the upside could be capped in the coming days and the Sensex and Nifty are likely to remain under pressure and fall further in the coming weeks. Though the indices have managed to bounce back well on Friday, the Russia-Ukraine war is likely to keep the market highly risk-averse. Nifty has closed at 16,658.4, down 3.58 per cent and Sensex has closed 55,858.2, down 3.41 per cent. Though indices Sensex and Nifty 50 managed to retain their range and bounce back in the first half of the week, Russia attacking Ukraine on Thursday dragged the indices sharply lower. Sensex and Nifty tumbled, breaking below their key support levels of 56,100 and 16,800 respectively. The Indian benchmark indices broke their range on the downside last week as expected.
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