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Daily Technical View on Nifty

No respite for bulls to comeback..

Observation:

The sharp downside momentum continued in the market for the sixth consecutive sessions on Monday and Nifty closed the day lower by 218 points. After opening with a positive note, the market made an attempt to move up in the early part of the session. Sharp selling has resumed in the mid to later part of the session with high volatility and Nifty finally closed near the lows.

A long bear candle was formed on the daily chart, which is indicating a continuation of steep downside momentum. The positive chart pattern like higher tops and bottoms on the daily chart seems to have negated by Nifty moving below the last higher bottom of 24753 levels on Monday. Hence, this market action indicates that any upside bounces from here or from the lows could be short lived and that could possibly form a new lower top.

Conclusion:

The underlying trend of Nifty continues to be negative. Having declined below the crucial support of 25100- 25000 levels recently, Nifty could slide down towards another lower support of around 24500-24400 in the near term. Immediate resistance to be watched at 25000 levels.

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