Tech POV : Nifty 50 Chart Shows Bear in the Driver's Seat

New Delhi: On Thursday, Nifty 50 crashed in the middle of weekly option contracts. As index formed a bearish candle on Thursday. If following daily chart then bears were in the driver’s seat following Wednesday’s bearish belt hold. Analysts quote that the index may face resistance breaching point at 9250 while supported by the 9050 points.
The index fell by 2.57% or 249 points to close at 9142 for the day. The index recovered some during the initial session but it coincided with 20 days moving average. Resulting recovery happened but not for long.
The index has fallen again below its crucial daily moving average. This shows the bears have an upper hand on the deck following the short term momentum favoring bears as well. The index seems to break near term support if 9050-9000 points. Whereas, any bouncing towards 9250 will likely to attract selling.
Generally, such price behavior seems to trigger a downswing trend by making an interim top at a recent high level of 9584. However, if any downswing trend is in progress from 9889 points then most likely nifty will breach all near supports. The remaining upside would be capped around 9400 points.
Rohit Singre Senior Technical Analyst at LKP Securities said, “The immediate support comes around 9100-9000 points and resistance in 9200-9300 points.”