Tech View: Nifty forms bearish candle; 23,100 breakdown to open further downside. How to trade on Monday

The formation of a powerful bearish candle on Nifty’s weekly chart definitely showcases a turnaround transfer, with bounces to be seen as alternatives to exit longs. As Nifty slipped beneath the pivotal zone of 200 SMA on Friday, the subsequent potential help could possibly be seen across the latest swing low of round 23,200-23,100, whereas a decisive breach is prone to open additional draw back in the direction of 22,800 within the close to interval.

So far as resistance is anxious, 23,800-24,000 is prone to be seen as an intermediate hurdle, adopted by 24,150-24,300, coinciding with the bearish hole and the cluster of EMAs on the each day charts for the upcoming truncated week, mentioned Osho Krishnan of Angel One.

Based on the open curiosity (OI) knowledge, the best OI on the decision aspect was noticed at 23,700 and 23,800 strike costs, whereas on the put aspect, the best OI was at 23,500 strike worth adopted by 23,600.

What ought to merchants do? Right here’s what analysts mentioned:

Kunal Shah, Mirae Asset SharekhanOn the each day chart, Nifty is buying and selling beneath the 20-day shifting common (DMA) and the 40-DEMA of 24,363 and 24,350, respectively. The momentum indicator has a unfavourable crossover on the each day chart. On the hourly chart, Nifty is buying and selling beneath the 20-hour shifting common (HMA) and the 40-HEMA of 23,962 and 24,135, respectively. The momentum indicator has a unfavourable crossover on the hourly charts. The market breadth was unfavourable with 474 advances and a pair of,225 declines on the Nationwide Inventory Change.

Nandish Shah, HDFC Securities

Nifty has additionally violated its 200-day SMA and EMA helps and closed on a weak wicket. The index is in continuation of a downtrend and the one help that’s seen on the chart is the swing low of 23,263, made on twenty eighth Nov 2024. 200-day SMA, which is positioned at 23,834, is now anticipated to behave as an intermediate resistance for the brief time period.(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Occasions)