Market Overview: The downside momentum in the market continued for the fifth consecutive session on Tuesday, with the Nifty closing the day with a steep decline of 309 points. Opening on a negative note, the market witnessed sustained selling pressure for the majority of the session. A sharp intraday weakness emerged during the mid-session, pushing Nifty to close near its intraday lows.
Technical Analysis: A significant long bear candle was formed on the daily chart, decisively breaking the crucial support level of 23,400 and closing lower. This pattern indicates a strong prevalence of downside momentum in the market. The bullish chart pattern, which had formed following the recent upside bounce, has now been negated, shifting the overall sentiment to sharply negative.
The larger degree bearish pattern of lower tops and bottoms is clearly visible on the daily chart. With the Nifty continuing its downward trajectory, it is now approaching a new lower bottom below the swing low of January at 22,786 levels.
Resistance and Support Levels:
Immediate Support: 22,786
Resistance on Upside Bounce: 23,200
Market Outlook: Considering the strong bearish momentum, any short-term upside bounce is expected to face strong resistance around 23,200 levels. If the downward pressure continues, Nifty might break below 22,786, leading to further weakness in the market.
Investors and traders are advised to exercise caution, closely monitor key levels, and follow a disciplined risk management approach in the current volatile market conditions.
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