New Delhi: On Thursday, Nifty 50 crashed in the middle of weekly option contracts. As index formed a bearish candle on Thursday. If following the daily chart then bears were in the driver’s seat following Wednesday’s bearish belt hold.
Analysts & experts 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. The resulting recovery happened but not for long.
Nifty 50 Chart Breaks Crucial Point
The index had fallen again below its crucial daily moving average. This shows the bears had an upper hand on the deck following the short-term momentum favoring bears as well. The index seemed to break near-term support of 9050-9000 points. Whereas, any bounce towards 9250 will most likely attract selling.
Possible Index Outcomes
Generally, such price behavior seemed to trigger a downswing trend by making an interim top at a recent high level of 9584. However, if any downswing trend would be in progress from 9889 points then most likely nifty will breach all near supports. The remaining upside would be capped at 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.”