INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Nifty on Friday cracked over 400 points to test the 11,200 level
The index formed a Bearish Candle on the daily chart and completely negated previous session’s Hammer pattern, shattering hopes of an
early recovery.
On the weekly scale, the index formed a bearish candle
Analysts said the 11,000 level is not a possibility for Nifty.
For the day, the index fell 414 points, or 3.56 per cent, to 11,219
This was the sixth day of consecutive fall for the index
During this fall, the NSE barometer has lost about 900 points.
“The positive movement created by the formation of Hammer and a positive
divergence on RSI on February 27 was negated completely in Friday’s session
As per weekly chart, Nifty formed a long negative candle this week, which moved down as per the larger negative sequence of lower tops and
Nifty’s near-term trend of continues to be weak; the next lower supports to be watched stand in the 11,000-10900 zone, which could be hit
in next few sessions,” said Nagaraj Shetti - Technical Analyst, HDFC Securities.
Rohit Singre Senior Technical Analyst at LKP Securities
said the index may see good support in the 11,100-11,000 range
If it manages to hold above the range, some relief rally towards the strong hurdle in the 11,400-11,650 zone is possible, he said.
“The
most concerning thing is India VIX, which shot up 70 per cent last week
Once we see some cooldown in India VIX, we may see some stability in the market,” Singre said.
“On weekly charts, Nifty and Nifty Bank
traded within an upward sloping channel,” said Jimeet Modi, Founder - CEO, SAMCO Securities.
“On monthly charts, this fall seems like a
mean-reverting opportunity for investors with a long-term view
Short-term traders should remain on the sidelines as VIX remains extremely high
The next immediate support level is at 11,100,” Modi said