The Nifty came under selling pressure in opening trade on weak global cues and slipped below its crucial short-term moving averages. The index took support at its crucial psychological support level of 9550 and bounced back towards 9,580 but it eventually closed below its opening level of 9,617. The Nifty50 opened at 9,617 and rose marginally to 9,621.40 which made a small upper shadow. It slipped to its intraday low of 9,560.80 before closing at 9,578, down 40 points from its previous close of 9,621.40.
The Nifty50 is likely to open on a flat note on Friday tracking muted handover from Wall Street. The Nifty50 came witnessed selling pressure and it closed near its day’s low on Thursday which could be a worrying sign for bulls.
The index took support at its crucial psychological support level of 9550 and bounced back towards 9,580 but it eventually closed below its opening level of 9,617 thus making a solid bearish candle on the daily candlestick charts.
According to Technical Analyst Prakash Gaba of prakashgaba.com, "Technically, I would still maintain that there is selling pressure in the upper regions and a slide to 9520 is a possibility and stiff resistance is at 9700". The Nifty unfolded as expected and saw the breach of 9580 but has close just on it. Technically, there is selling pressure in the upper regions and so a slide to 9520 is still a possibility but I would also not rule out a sharp up move as well. The crucial support for the Nifty is at 9580-9520 and the resistance is at 9700- 9724.
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