Nifty ended in the red for the second consecutive day as weak global cues and concerns over rate hikes and inflation kept the risk appetite subdued.
Nifty opened at 16,225.55 against the previous close of 16,214.70 and touched the intraday high and low of 16,262.80 and 16,078.60 respectively.
The index finally closed 90 points, or 0.55 percent, lower at 16,125.15 with 18 stocks in the green and 32 in the red.
Among the sectoral indices, the Nifty Media index fell 2.57 percent while the IT and Pharma indices fell 1.88 percent and 1.53 percent respectively.
Palak Kothari, a research associate of Choice Broking highlighted that Nifty formed a shooting star kind of pattern on the daily timeframe which indicates downside movement momentum for an upcoming session.
"For the last 14 days, Nifty has been trading in a range of 15,750-16,410 and either side breakout can direct further direction. In addition, the Nifty has given a closing below the 21-day moving average which indicates weakness in the counter," Kothari said.
"The momentum indicators MACD and Stochastic were trading with a positive crossover and reversed from the oversold zone on a daily chart which suggests a northward journey in the counter. The Nifty may find Strong support around 16,000, while on the upside, 16,300 may act as an immediate hurdle," said Kothari.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in pointed out Nifty continued its weakness in line with the 'Shooting Star' formation of Monday’s session.
"Considering two exceptionally strong days in the last six sessions, this counter can be expected to remain inside a trading range of 16,400 and 15,900. Nevertheless, a close below 15,775 shall open up much bigger downsides for the index. Strength can be expected only at a close above 16,400. Therefore, for time being, it looks prudent for the market participants to remain neutral on Nifty bets till a decisive move arises in either of the directions," said Mohammad.
As per Rupak De, Senior Technical Analyst at LKP Securities, 16400 is likely to remain a resistance over the near term while support on the lower end remains at 16,000-16,020.
"Going ahead, the volatility may continue over the near term. Any decisive breakout above 16400 may induce a strong directional move in the market," said De.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.