On the back of weak global markets and SGX, Nifty opened on a gap down note and made intraday low at 16031.15 level and closed the session with a loss of 157.70 points at 16058.30 level.
However, Bank Nifty closed at 35132.25, down 337.40 points. Barring power and realty, all other sectoral indices ended in the red, while metals and auto were among the top losers. Out of the Nifty 50, 44 stocks ended in the red, suggesting broad-based selling.
NTPC, BAJFINANCE, ADANI PORT, COALINDIA and BHARTIARTL were the top gainers in Nifty stocks while EICHERMOT, BPCL, HINDALCO and INFY were the major laggards. On the technical front, Nifty is trading with higher low and lower low formation since last three days which suggests negative development on chart formation.
Moreover, the index has formed a bearish candlestick on the daily time frame which suggests that the bears are quite active. Nifty has taken support from 21HMA i.e. 16025 level and may show further downside if it closes above the same, which breaks the points below it.
On Nifty OI data, highest level was seen on call side after 16500 and then on put side after 16200 at 16000 level and then after 15700 level. The momentum indicator Stochastic is trading with a negative crossover and has bounced off the overbought zone at one point. Daily time frame that suggests traveling south in the counter.
Nifty may find support near 16000-15900 levels while an upside move to 16260 may act as an immediate hurdle. On the other hand, Bank Nifty has support at the level of 34500 while there is resistance at the level of 35500.
Overall, the stock has seen distinctive moments. A continued breach below the 16000 level could show further downside momentum.
The global clue to the trend became more important.
senior technical analyst
Source: Choice India
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