The benchmark indices of the Indian share market saw a significant decline in yesterday’s trading sessions. The Nifty 50 has been breaching important support levels one after another. On Monday, the 50-stock compiled index closed the session below 22,600. Here are key support zones for Nifty 50 to watch out for.
According to Prbahudas Lilladher if the Nifty breached the 22,400 support level decisively then the selling may intensify, with the next downside target moving to 21,600 and 21,400 zone. For the day, it sees 22,400 levels as the support zone while 22,800 as resistance. However, to regain some strength the Nifty 50 needs to move past the 22,800 level. Now, it needs to close above 23,000 to show a conviction of a further upward move.
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Bajaj Broking sees the immediate support level placed at 22,500, if it is breached then the next one is placed at 22,300. On the flip side, the resistance is seen at 22,800 level, the same as Prabhudas Lilladher.
“We believe that while the current market texture is weak, but it is also oversold. Therefore, a quick pullback rally is a strong possibility,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. For traders, the level of 22,650 will act as a trend decider. As long as the market is trading below the same, weak sentiment is likely to continue. Below it could slip till 22,450-22,400 level.
“On the daily charts, we can observe that the Nifty has broken down the range of 23,100–22,800 indicating a resumption of a decline. On the downside, the next crucial level to watch out for is 22,400 which coincides with the 20-month moving average,” said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan. On the upside, 23,050 shall act as an immediate hurdle from a short-term perspective.
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On Monday, the NSE Nifty 50 closed the day 243 points or 1.06% lower at 22,553.35, while the BSE Sensex lost 857 points or 1.14% to close at 74,454.
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