Nifty’s short-term trend seems to have reversed down after a reasonable rise from the lows. Immediate support is placed at 22,300 and the weakness below this support could trigger more declines. Immediate resistance is at 22,625 levels, Nagaraj Shetti of HDFC Securities said.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
Nifty remained under selling pressure throughout the session as the index failed to sustain above the crucial level of 22,500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal. Immediate support is at 22,300, below which the Nifty could extend its losses towards 22,000. On the other hand, the level of 22,500 might act as a technical resistance for the Nifty.
Jatin Gedia, Sharekhan
The Nifty witnessed selling pressure throughout the day and closed weak for the day down ~120 points. On the daily charts, we saw that Nifty faced selling pressure from the resistance zone of 22,560–22,625. Until this zone is not taken out decisively, we can expect the consolidation to continue. On the downside, crucial support is now placed at 22240 – 22200 where support parameters in the form of the 40-day moving average and the 50% Fibonacci retracement level of the rise from 21,777 – 22,626 is placed.
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