The index has been buying and selling under its key shifting averages now. Analysts mentioned that whereas a small bounce cannot be dominated out, the continued ache available in the market is unlikely to ease within the close to future.
Mazhar Mohammad of Chartviewindia.in mentioned a bear candle on the weekly charts, the fourth week in a row is emphasising the bear domination available in the market.
“On this course of, Nifty50 additionally bridged the bullish hole current between 16,447 and 16,418, registered on March 10, which was speculated to act as a help level. Therefore, remaining under 16,400, the following logical goal for the index shall be across the 16,150 stage. In between, any pullback try might perish round 16,650 stage,” he mentioned.
For the day, the index closed at 16,411.25, down 271.40 factors or 1.63 per cent.
“Nifty appears to have taken help of 16,350 stage, earlier than exhibiting intraday consolidation. Usually, a formation of Doji after an inexpensive weak spot alert concerning pattern reversal on the upside. The affirmation by the best way of a sustainable shut above 16,500 stage might open upside bounce available in the market,” mentioned Nagaraj Shetti at HDFC Securities.
Shetti mentioned the bigger diploma of decrease tops and bottoms is on the playing cards and the weekly chart signifies a risk of the brand new decrease backside formation under 15,671 ranges within the coming few weeks.
“For merchants, 16,300 can be the important thing help stage. Nonetheless, a fast intraday pullback rally can’t be dominated out if the index succeeds to commerce above 16,300. Above the identical, the pullback rally might proceed as much as 16,550-16,700.
Under 16,300, promoting stress is prone to intensify, and under the identical, Nifty50 might contact the extent of 16,150-16,000, mentioned Amol Athawale, Deputy Vice President – Technical Analysis, Kotak Securities.