Tech View: Nifty loses momentum, key parameters now favour bears
Nifty bounced during the day after testing its 13-day exponential moving average at 11,834.
“The bears have managed to pierce Nifty50’s support zone at 11,850. The index is likely to witness further profit booking, testing the next support at 11,700. That said, the broader uptrend remains intact. It is just that the market is seeing a phase of consolidation,” said Amit Shah, Technical Research Analyst with Indiabulls Ventures.
For the day, Nifty closed 73 points, or 0.61 per cent, lower at 11,840. The index formed a bearish candle on the daily chart.
“Technically, we are anticipating further weakness for the equity market. Below the 11,850 level, the index should rest between 11,750 and 11,700 levels,” said Shrikant Chouhan of Kotak Securities.
That said, the index bounced during the day after testing its 13-day exponential moving average at 11,834.
“The bulls can be expected to put up some fight around this level, but other key technical parameters are shifting in favour of the bears as the daily MACD triggered a sell signal in Wednesday’s session,” said Mazhar Mohammad of Chartviewindia.in.
Moreover, Nifty has decisively breached its ascending trendline, which was in progress from the low of 10,690 registered on September 20. Hence, Nifty remains vulnerable to more downsides unless it closes above 11,950 level, Mohammad said.