Nifty: The Nifty slide to continue; 15,000 possible this week

Technical analysts see Exquisite tested a level of 15,000 or lower after falling 5.6% last week. Nifty closed at 15,293.50 on Friday and performed lower than most regional competitors during the week.

While some see a rebound in market, it would be difficult to maintain the peaks. Some even see the index fall to 14,800 levels. Falling below 14,880 would mean that Nifty has entered a bearish phase, as this would mean that the index fell by 20% from its record high in October 2021. Analysts said rebounds are possible, but this will not be the opposite trend.



Where is Nifty headed?

Nifty finally violated the key support zone at 15,670 levels, i.e. March 2022, low and now approaching the lower band of the shrinking expanding formation, which currently exists at about 14,800 levels. It is important to note that all levels below 14,880 will also mark the entry into the bear phase, ie. 20% drop from a record high of 18,604.45 levels. Against the background of all the negativity, we can see some intermediate break due to oversold American markets but the zone 15,550-15,700 would act as a strong obstacle.

What needs investors do i

Investors must continue with the “sell on the rise” approach until the trend reverses. Any rebound to the 15,550-15,700 resistance zone would offer the opportunity to create shorts. However, due to excessive volatility at night, it is wise to trade through options strategies such as Bear Put Spread instead of bare shorts in futures. Among sectors, the energy package seems more vulnerable to a new downturn. In addition, we closely monitor the mark of 32,000 in the banking index as a creation or breakout level. On the other hand, the automatic package still shows relatively better performance, while selected stocks of pharmaceutical and FMCG some rest may be obtained after the recent decline. Participants must rank their positions accordingly. respectively.


Where is Nifty headed?

Nifty fell sharply in two weeks, bringing it to oversold territory based on the RSI (Relative Strength Index) indicator. The last two times, this meant that the market bounced back in the opposite direction before going down. This time should not be different. This week, Nifty may try to return to 15,800-16,000 in a surprise rebound, but the movement is not the opposite. Once the rebound is made, the downtrend may resume, as higher levels will attract sales pressure. Overall, we expect Nifty to drop to 14,500 in the coming weeks.

What should investors do?

With falling oil and gas prices, markets may get some relief from the risk of higher inflation. This also means that the only strong sector, ie. energy oil and gas will start to perform less. This means that there may be very little hiding space for investors in the near future. Short-term rebound in Nifty is best played with index futures only because the rotation between stocks or sectors of the bear market makes it difficult to guess which will certainly rise. On the other hand, during downturns, I would expect a wider decline.


Where is Nifty headed?

Last week, Nifty finally broke the key range of 15.650-15.750, which has been acting as a strong support cluster all along. The weekly close below 15,400 touched critical support, leaving room for further declines to 14,800 levels. Even market width indicators clearly point to more caution. The index now faces strong resistance near the 15,650 and 15,750 levels.

What should investors do?

As pulse oscillators are extremely oversold, there may be cases of sudden attacks of short coverage. However, we believe that traders should use such opportunities to create short positions in the index. Any rise to 15,450 can be used by traders to create short positions in Nifty futures for a target of 14,800 with a stop loss of 15,800. Medium-term investors can use the downturns to accumulate stocks such as

and Mahindra and Mahindra.

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