Nifty formed a bearish candle on the daily chart as the closing was lower than the opening level.
Nifty continued its lower highs lower lows formation of the last two sessions.
Nifty opened down at 15703 and continued to trade lower to hit the day's low of 15578. Nifty closed 120 points down at 15632.
Nifty opened lower and remained under pressure throughout the session, extending losses for the third straight day. Banking & financials, metals, pharma and auto stocks pulled the market down.
Bears appear to be strengthening their grip on the market as the Nifty broke from its tight consolidation range of 15870/15680 level on the line chart (closing price chart). Hence, today's intraday recovery from the lows of 15578, which depicted a Hammer formation, may not have enough significance for bulls.
The force with which the market has been falling in the last three sessions may have altered the medium term trend, which will be confirmed if the Nifty closes below 15450.
If bulls manage to defend 15600 in the next session, some sort of stability shall be expected for the next couple of days.
Initial hurdle can be around 15730 and if the bulls manage to push the index beyond it, a pullback move should extend into the zone of 15828/15896. If the Nifty, however, closes below 15600, it will initially drag down the index towards 15450.
Traders should remain neutral on the long side, whereas intraday shorting can be considered below 15578 for a target of 15450 by placing a stop above the intraday high.
Sector Wise :- Except FMCG all other indices ended lower. Midcap and Smallcap indices fell over 1 percent each.
Bank Nifty formed a bearish candle on the daily chart and formed lower highs for the third session in a row.
Bank Nifty opened gap down at 34791 and sharply moved lower to breach its 50DMA. Bears had a complete grip over the rate-sensitive index. It closed at 34415, losing 663 points or 1.89 percent.