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Daily Technical View on Nifty

The market is in strong downside momentum..

Observation:

After showing minor pull back rally amidst range movement in the last five sessions, Nifty slipped into sharp weakness on Monday and closed the day lower by 309 points.

After opening with a minor positive note, the market slipped into a steep weakness in the early to mid-part of the sessions. Minor upside recovery with range bound action was seen in the mid to later part of the session.

A long bear candle was formed on the daily chart with minor lower shadow. Technically, this candle pattern indicates a decisive downside breakout of the range movement.

Bearish pattern like lower highs and lower lows is continued on Nifty as per daily timeframe chart.

The sharp downside breakouts after minor pull back rallies of the last few weeks signal downside breakout of the bearish flag patterns. This could mean that the market is currently in a strong downside momentum.

Conclusion:

The short term trend of Nifty continues to be down and one may expect more weakness in the short term. The next crucial lower supports to be watched around 23500, which is 200 day EMA. Any bounce back from here could find strong resistance around 24200 levels.

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