On Monday Nifty recovered some of its losses after plunging over 90 points in morning trade, closing at 7563.85 down with 37.50 points, indicate ongoing selling will continue into the market.
Now Nifty is trading near our crucial support level i.e. 7540 which was mentioned in our previous newsletter and we believe that Nifty may find support in that area. If it fails to respect the 7550 mark on the closing basis it may extend its downfall towards 7420 levels, which is most likely.
Technically on a daily charts, Nifty is trading below 20 DMA, 50DMA & 100 DMA indicate index has lost the support level, which further move more down. Tracking Bollinger Band Nifty is ridding the ‘Lower Bollinger Band’ and also the bands are widening, indicating negative view. Momentum Oscillator RSI & MACD is also moving southward direction, which add more bearishness for the index.
For today, Nifty is likely to continue its fall towards 7420 levels. On the other hand, 7720 will act as an immediate resistance levels.
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