INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 tumbled over 1 per cent
on Wednesday and in the process formed a solid bearish candle on the daily chart
The index formed lower high and lower low for the sixth session in a row
Analysts believe unless Nifty50 negates this trend, the market may remain negatively biased in the short term
For now, minor support is seen at 10,396.For the day, the index settled 106.35 points, or 1.01 per cent, lower at 10,430, decisively
The outlook for
Thursday remains weak
We expect the index to test the low of 10,350, 10,300 levels over the next few sessions
Research Analyst at HDFC securities.
Chandan Taparia of Motilal Oswal Securities believes the index needs to negate the formation of lower
highs and lower lows to get any short-term stability, else the ongoing weakness in the index may continue to persist.
This downswing appears
to have a logical target at 10,146 level, which should sustain to pave way for a multi-week corrective structure, said Mazhar Mohammad of
On the upside, a close above 10,533 can be considered an initial sign of strength," Mohammad said.
Vikas Jain, Senior Analyst at Reliance
Securities, expects the Nifty50 to find support at the 10,320 level, which coincides with its long-term 200-day moving average and its 61.8
per cent Fibonacci Retracement level of the prior rally from 9,952 to 10,929 levels.
The daily momentum indicator Stochastic, meanwhile, has
turned bullish after signalling oversold zone, said Rajesh Palviya of Axis Securities
It is signalling possible upside, he said.
