Tech View: Nifty forms long bear candle. What traders should do on Thursday

NEW DELHI: Nifty on Wednesday ended 160 points lower to form a long bear candle on the daily chart and move below the key support at the 20-week EMA.

The short-term trend of Nifty continues to be negative. Having placed the long-term support at the lows, there is a possibility of a small upside bounce from near 19,100-19,000 levels. A breakdown of 19,000 is likely to open the next downside of 18,600 levels in the near term. Any upside bounce from here could find strong resistance around 19,250-19,350 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

What should traders do? Here’s what analysts said:
Prashanth Tapse, Senior VP (Research), Mehta Equities
It was a sea of red at Dalal Street which was primarily clouded by lingering concerns about corporate India’s earnings which as of date were uninspiring and, most importantly, they could come under heavy pressure from inflation, an economic downturn, and soaring interest rates. The negative takeaway was that the bear remained in total control despite WTI Oil prices tumbling to $83/barrel. Technically, Nifty has support at the 18,851 mark and strength only above the biggest hurdle at the 19,557 mark.

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
Nifty Bank bears maintained control, leading to a breach of the 43,000 support level. The overall market sentiment remains bearish, and a “sell on rise” strategy is advisable. Immediate resistance is seen at 43,500, and further selling pressure could potentially drive the index down to 42,000, a long-term support level.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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