The Nifty Formation Suggests a Near-Term Bearish Trend
The Nifty Index has formed a long bearish candle on its weekly chart, hinting at a potential bearish trend in the near term. While this development may lead to a further decline, there is a possibility of a minor pull-back rally or sideways consolidation in the next 1-2 days. This notion is backed by the index’s sharp fall on Friday, which may have caused the bears to catch their breath.
Three experts from various financial institutions have weighed in on the situation. According to Tejas Shah, Technical Research Analyst at JM Financial & BlinkX, the support for Nifty is at 24,100 and 24,000, with immediate resistance at 24,450-500 levels and the next crucial resistance at 24,700-750 levels.
The open interest (OI) data reveals that the highest OI on the call side is at 24,400 and 24,300 strike prices, while the highest OI on the put side is at 24,200 strike price, followed by 24,500.
Jatin Gedia from Sharekhan suggests that the index may experience a pullback towards 24,350, which coincides with the daily lower Bollinger band and may be used as an opportunity to sell. Rupak De from LKP Securities believes that the index has slipped below its recent consolidation and may continue to decline, with near-term support at 24,000. According to Praveen Dwarakanath from Hedged.in, the Nifty’s momentum indicators on the weekly chart continue to show weakness, and any bounce in the index should be used as an opportunity to sell, with a target of 23,700 levels.
It is essential to note that the opinions shared by the experts are their own and do not represent the views of the Economic Times.
