Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a gradual decline in the last four sessions, the weakness in the market got intensified on Monday and Nifty closed the day lower by 306 points. After opening on a flat note, Nifty shifted into a consistent intraday weakness from the highs, which continued for the whole session. The intraday upside recoveries in between were sold off at the intraday lower highs and Nifty closed near the lows.
A long bear candle was formed, after the formation of small negative candles in the last four sessions, which indicate that the downside momentum has started to gather strength. This could mean chances of more weakness for the Nifty in the coming sessions.
The immediate support of 20 day EMA has been broken on the down at 14850 and Nifty closed lower. Now the downside momentum has started to show its similarity with the previous decline of Late Jan. The previous decline that started from a swing high of 21st Jan (14753) has consumed 6 trading sessions and Nifty declined by around 1150 points.
The current decline has already consumed 5 trading sessions (taken from the swing high of 15431 of 16th Feb) and so far lost around 796 points. As per the pattern of sequential movement, one may expect either 1-2 sessions of weakness or further weakness of around 300-350 points, whichever occurs later.
The next crucial support is placed at 14335, which is a opening upside gap of 2nd Feb that formed after Union Budget and the crucial weekly support of 10 week EMA around 14365. Hence, both the support levels match intended decline for market.
Conclusion: The short term trend of Nifty continues to be negative. The pickup of downside momentum could signal more weakness in the next few sessions. The lower levels to be watched around 14350-14300, which could be achieved by this or by next week. Immediate resistance is placed at 14800-14850.
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