A strong Sell-off was seen in Indian Markets on Friday, 21st December. Indian Indices opened higher but soon witnessed a strong supply which continued through out the session. The sell-off was mainly triggered by concerns on Global economy growth.
Nifty opened at 10,944.25, made a high at 10,963.65 but failed to cross the psychological level of 11,000. A strong selling was seen from the highs of the day and the Index ended the session with measurable losses of 1.81%. Bank Nifty on the other hand, opened moderately strong at 27,261.25 but soon saw a strong selling momentum and the Index fell 400 points in the session to end at 26,869.65. It ended the day with 1.49% losses.
This selling came after 9 consecutive sessions of strong up move and signifies a temporary halt in the underlying uptrend.
Daily Charts of Nifty display a Long Bearish Candle which indicates a Strong Selling momentum. Nifty has closed near the lows of the day in the last trading session which is also a strong support for next leg of selling. The negative sentiment would continue to prevail if this support of 10,735 is taken out in the next session on Monday. Momentum Oscillator, RSI is also gearing towards a fall as it is showing a falling line and a probable move towards the overbought zone.
A zoomed in look at the Hourly charts of Nifty also display a break in the uptrend line which reiterate the fact that the underlying buying momentum may soon start to wane. The immediate resistance for Nifty stands at 10,780 (R1) and immediate support is at 10,735 level. Any break above or below these level would be considered as buying and selling points for Intraday traders.
Bank Nifty on the other hand, has also formed a bearish long candle indicating strong selling momentum in place . It is also trading below the 10, 20 SMA indicating the changing sentiment of the market participants. This negative sentiment may prevail if the Index breaks immediate support of 26, 820. However, in case of any rebound fresh Intraday buy may be initiated above the immediate resistance of 26,910.
Nifty Trading levels/Trade Date- 24/12/2018
Buy above 10,780 for targets of 10,800/10,820
Sell below 10,735 for targets of 10,705/10,680
Bank Nifty Trading levels/Trade Date- 24/12/2018
Buy above 26,910 for targets of 26,960/26,990
Sell below 26,820 for targets of 26,770/26,720
*All levels mentioned are of cash/ spot segment.