Snapping the two-week losing streak, Nifty50 recovered 1 per cent in the week gone by; however it failed to provide a close above mid-point of the prior week’s decline. On Friday, after marking a high at 17490; soon the index entered the negative territory and fell up to 17181-level. Friday’s large bearish candle ensures a hurdle near the 17400-17500 zone, whereas negative follow-up action could drag the index till the 17130-17050 zone.
Post the three-week decline, Bank Nifty formed an indecisive candle on the weekly chart. Throughout the week, Bank Nifty failed to surpass the peak of the large bearish candle formed on 26th Nov; hence under-performance from the Bank Nifty is expected to continue as long as it remains beneath the level of 36900.
Defending the half-yearly mean, Nifty Commodities index found some positive traction this week; sustainability may continue its recent rally. After recovering for two days, the Energy index found stiff resistance; a series of descending highs and lows are intact on short-term charts.
Recommendation
Sell
December futures near Rs 1930-1940
Stop loss: Rs 1985
Target: Rs 1835
Forming a large bearish candle, the stock has broken the recent support levels. Inability to hold current levels may unlock further downside potential for the stock.
(The author, Amit Trivedi, CMT is Technical Analyst-Institutional Equities at YES Securities. Views are his own.)
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.