Nifty's slide to continue;  15,000 possible this week

Nifty’s slide to continue; 15,000 possible this week – Mail Bonus

Technicians see Nifty test 15,000 points or lower after falling 5.6% last week. Nifty closed at 15,293.50 on Friday and supported most of its peers in the area this week.

Although some see a return to the market, it would be difficult to sustain the hills. Some even see the index fall to 14,800 points. A fall below 14,880 would mean that Nifty is in a bear phase as it would mean that the index has fallen by 20% since its record high in October 2021. Analysts said a setback is possible but it will not reverse.



Where is Nifty headed?

Nifty has finally dismantled the important support area in 15,670 points, i.e. March 2022, low and is now moving towards the lower band of declining widening formation which is now around 14,800 points. It is important to keep in mind that all levels below 14,880 would also mark the entrance to the bear phase, ie. 20% decrease from the record high of 18,604.45 points. In the midst of all the negativity, we could also see some interval due to the oversold US markets, but the 15,550-15,700 area would act as a strong barrier.

What should investors do?

Investors should continue with the “sell at an increase” approach until the trend reverses. Any rebound towards the 15,550-15,700 resistance zone would offer an opportunity to create shorts. However, due to excessive instability overnight, it makes sense to trade in options like Bear Put Spread instead of bare shorts in futures contracts. Among the sectors, the energy package appears to be more sensitive to new falls. In addition, we are closely monitoring the 32,000 mark in the bank index as a type or fraction. On the other hand, the auto-pack shows even better performance, while selected stocks from Pharmaceuticals and FMCG may have some respite after a recent decline. Participants should coordinate their position accordingly. accordingly.


Where is Nifty headed?

Nifty has fallen sharply in two weeks, which has put it in a volatile zone compared to the RSI (relative strength index) index. The last two times meant that the market bounced back in a resistance movement before falling. This time should not be any different. This week, Nifty could try to move back to 15,800-16,000 in an unexpected jump, but the move is not a change of direction. When the jump is complete, the downturn may resume as higher levels will lead to selling pressure. Overall, we are looking at Nifty going down to 14,500 in the coming weeks.

What should investors do?

With falling oil and gas prices, markets could be relieved of the risk of higher inflation. What this also means is that the only strong sector, i.e. energy oil and gas, will start to perform. This means that it could be a very small place to hide for investors in the near future. The short-term jump in Nifty is best played with index futures simply because the rotation between stocks or sectors in the bear market makes it difficult to guess who will definitely rise. On the other hand, during the declines, I would expect a broader decline.


Where is Nifty headed?

Nifty last week finally broke the key range of 15,650-15,750 which acted as a strong support cluster all this time. The weekly close below 15,400 has provided significant support and created room for further bugs up to 14,800 points. Even the market latitude indicators clearly indicate more caution. The index now faces strong resistance near 15,650 and 15,750 points.

What should investors do?

Because the momentum oscillators are very violent, there may be cases of sharp short-range bursts. However, we believe that traders should use such opportunities to create short positions in the index. Every increase towards 15,450 points can be used by traders to create short positions in the Nifty future for the target of 14,800 with a stop loss of 15,800. Medium-term investors can use the dip to collect stocks like

and Mahindra & Mahindra.

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