New Delhi: “On Thursday, the index fell below the support level on a closing basis for the first time in continuous six sessions rally. Nifty formed a bearish candle on the daily chart and broke crucial support at 10,000 points,” Analysts said.
He also added, “Nifty is now staring at the downward trend with support at 9,800 and key resistance at 10,100 levels”.
Traders are advised to avoid any significant investment and follow the buy on dip approach at these volatile times.
What Are Our Experts View?
“The positive sequence of forming higher tops and higher bottoms on the daily chart along with ongoing coronavirus pandemic all over the country could be a part of the formation of the higher bottom. Hence, more weakness is likely in the short term before Nifty turns from its higher bottom,” Nagaraj Shetti of HDFC Securities said.
“The increase in numbers of daily new infections could be a signal to the market about the possibility of introduction of some additional lockdown measures. India VIX moved up by 0.75 per cent to 29.66 level and is still a ruler of lower levels, indicating no major fall in the near future,” Vinod Nair of Geojit Financial Services said.
Advice to Investors
Nifty Bank has support between 20,300 – 20,000 points and resistance in 20,800 – 21,000 zone. Taking consider current charts’ daily patterns, there could be some bounces ahead. Investors need to tighten their seat belts and need to a bit more careful in the coming future.