A long bear candle was formed, after the formation of small negative candles in the last four sessions, which indicate that the downside momentum has started to gather strength. This could mean chances of more weakness for the Nifty in the coming sessions. The next crucial support is placed at 14335, which is an opening upside gap of 2nd Feb that formed after Union Budget and the crucial weekly support of 10 week EMA around 14365. Hence, both the support levels match intended decline for market.
The short term trend of Nifty continues to be negative. The pickup of downside momentum could signal more weakness in the next few sessions. The lower levels to be watched around 14350-14300, which could be achieved by this or by next week. Immediate resistance is placed at 14800-14850.
~Nagaraj Shetti, Technical Research Analyst, HDFC Securities
