In early trade, the Nifty 50 saw a strong lead today and set a new record. But in the last business hour due to profit recovery, it lost all its gains and closed the red mark, breaking the 6-day period of continuous growth. The weakness in the European markets and the continued sell-off by equity mutual funds showed its impact on market sentiment.
Nifty today created a bearish candle on the chart which is similar to the spinning top pattern on the daily chart. Spinning tops are often considered to be a neutral pattern, indicating uncertainty in the market. It can take shape in both the uptrend and down trend of the market.
Experts say that if the Nifty breaks the psychological level of 15000 in the coming trading sessions, the selling pressure may look further increased. Azhar Mohammed of Chart View India says that it is advisable to keep a neutral view on the long side for some time. They are of the opinion that if the Nifty moves below 15000, then with the initial target of 14500, the positional traders may be seen to short (sell).
Volatility (fluctuation) remains at the upper levels in the market. India VIX has risen 1.29 percent to 24.27 from 23.95. Today the Nifty opened strongly at the level of 15,164.15 and touched the intra-day level of 15,257.10. But gradually it lost all its lead till it reached the last hour of the trading session and touched the day’s low of 1564.30. The Nifty has closed at 15,109.30, down by 6.50 points today.
Mazhar Mohammed of Chart View India told Moneycontrol that finally the Nifty has shown signs of weakness today. If the Nifty slips to the level of 15114 in the next trading sessions, then we may see further profit recovery. He further said that if the Nifty slips below 15000, then we may get a bigger correction. In this situation we can also see 14700 levels downwards.
Talking about Bank Nifty, it opened strongly today at the level of 36,058.80. Then it saw a decline and it touched a low of 35636.85 in the early hours of the business session. However, it later recovered from a low level and touched an intraday high of 36,477.15. It made the Doji Candle on the Daily Chart. But after 7 trading sessions, it swallowed higher bottom.
Chandan Tapadia of Motilal Oswal says that the bank Nifty has been in the range of 35500 and 36,600 in the last few trading sessions. Bank Nifty will have to hold 36,000 to move towards 36,500-36,600. There is good down side support for the Bank Nifty in the 35,500 and 35,250 zones.
He further said that from a stock perspective, Tata Chemicals, Voltas, Asian Paints, Mahanagar Gas, Indraprastha Gas, TVS Motor, Axis Bank, and Titan and L&T are signs of pickup. Balakrishna Industries, BHEL, L&T Finance Holding, Zee Entertainment, McDowell, Cadila Health Care, Coal India and ITC are showing weakness.