Markets corrected further on Wednesday after gap down opening - HDFC Securities
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Daily Technical View on Nifty
Market: Observation
Markets corrected further on Wednesday after gap down opening. Nifty lost 183.45 points or 0.8% to close at 22,704.7. Broad market indices like BSE Small Cap gained, thereby outperforming Sensex/Nifty. Market breadth was negative on BSE/NSE.
Nifty: Caution warranted for very near term
On the 15 min chart, we can observe that Nifty opened with a down gap and after a brief pullback, gradually came lower and ended near lows of the day. We also observe that 20 period MA remains below the 50 period MA indicating the negative moving average crossover is intact. This indicates that one needs to be cautious for the very near term until the Nifty can take out the immediate resistances of 22826-22999.
Nifty: Uptrend has weakened
On the Daily chart, uptrend has weakened. Wednesday’s negative closing has led to the Nifty closing below the previous swing high of 22795. Nifty nevertheless continues to hold above the 20 and 50 day SMA. 14-day RSI at 56.57 is falling and has now moved below its 9 day EMA. This indicates that momentum is weakening
Further downsides are now likely once the immediate support of 22685 is broken. Immediate resistance is now at 22826. Markets are likely to be volatile in the coming sessions as we approach the Election result announcement.
Sectorally, except for the Media and Pharma indices, most of the sectoral indices are now correcting.
Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795
SEBI Registration number is INZ000171337
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Mid-Market Comment by Mr Shrey Jain, Founder and CEO SAS Online - India`s Deep Discount Broker
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