scorecardresearchTechnical View: Nifty forms small bearish candle on weekly chart; weakness may continue, say analysts

Technical View: Nifty forms small bearish candle on weekly chart; weakness may continue, say analysts

Updated: 13 Apr 2022, 05:02 PM IST
TL;DR.

  • Nifty opened at 17,599.90 against the previous close of 17,530.30 and touched intraday high and low of 17,663.65 and 17,457.40 respectively. Nifty eventually settled 55 points, or 0.31 percent, lower at 17,475.65.

The market will react to two major earnings i.e. Infosys and HDFC Bank on April 18. Besides, any major development on the global front in the next four days would also impact the sentiment.

The market will react to two major earnings i.e. Infosys and HDFC Bank on April 18. Besides, any major development on the global front in the next four days would also impact the sentiment.

Nifty ended in the red for the third consecutive session on April 13 as sentiment remained fragile due to higher inflation and weak global cues.

Markets remained under pressure and ended marginally lower, in continuation of the prevailing corrective phase.

Nifty opened at 17,599.90 against the previous close of 17,530.30 and touched intraday high and low of 17,663.65 and 17,457.40 respectively. Nifty eventually settled 55 points, or 0.31 percent, lower at 17,475.65.

Nifty Bank ended 0.75 percent lower while the financial services index fell 0.87 percent. Nifty Private Bank index fell 0.87 percent.

Since the market is closed on April 14 and 15, today's session marked the close of this week for the market. Sensex fell 1.86 percent and Nifty retreated 1.74 percent during this week.

The market will react to two major earnings i.e. Infosys and HDFC Bank on April 18. Besides, any major development on the global front in the next four days would also impact the sentiment.

Technicals

Niftysigned off the truncated week with a small bearish candle on the weekly charts as the trading range remained between 300 odd points.

As per Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, pointed out the index has been testing its 20-day simple moving average on the daily charts for the last two trading sessions.

"It is critical for the index to sustain above 17,440, on a closing basis, to retain sideways bias and a failure to do so can drag down the indices towards its 200-day moving average whose value is placed around 17,150 level," said Mohammad.

"A sideways consolidation should be expected as long as the Nifty manages to defend 17,400 and a close above 17,663 can be considered as an initial sign of strength for the near term. Therefore, it looks prudent to remain neutral on the long side till some signs of strength are visible," said Mohammad.

Ajit Mishra, VP - Research, Religare Broking pointed out Nifty is currently respecting the first line of defence at a 20-day exponential moving average (EMA) on the daily chart around 17,400 and its breakdown can push the index to the 17,250 zone.

In case of a rebound, the 17,650-17,750 zone would act as an immediate hurdle. We suggest preferring hedged bets and maintaining focus on stock selection," he said.

Nifty remained volatile with a largely negative bias throughout the session.

"On the lower end, the index challenged the support levels of 17,400-17,450. On the higher end, it failed to sustain above 17,600. Going ahead, the weakness may continue. Crucial support is seen at 17,400, below which a serious correction in the market may be witnessed. On the higher end, resistance is visible at 17,600/17,800," said Rupak De, Senior Technical Analyst at LKP Securities.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 13 Apr 2022, 05:02 PM IST