After The Bell: Nifty breaks below its 50-DMA; what should investors do on Tuesday?
“The Nifty could fall to 11,000 or 10,900 levels if it breaks 11,150. Our advice is to reduce weak long positions, if the index bounces to 11,300/11,330 levels,” said Shrikant Chouhan of Kotak Securities
September 21, 2020 / 08:16 PM IST
The sharp selloff in the second half of the trading session pushed the Nifty below its crucial support at 11,300 and also its 50-Days Moving Average (DMA) placed at 11,273 on September 21. It ended the session 254 points lower at 11,250 levels.
The Sensex plunged by more than 800 points but managed to close above 38,000 levels towards the close of trade.
Sectorally, profit-taking was visible in telecom, realty, metals, automobiles and healthcare space.
The Nifty 50 index could fall to 11,000 or 10,900 levels if it breaks 11,150. Our advice is to reduce weak long positions if Nifty bounces to 11,300/11,330 levels.
Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesAfter showing sideways range in the last five-to-six sessions, Nifty slipped into a sharp weakness on September 21 and closed the day lower by 254 points.A long bear candle was formed, that has broken below the crucial lower support of 20-Days EMA at 11,415 and closed lower.The short term trend of Nifty seems to have reversed sharply. Now the market is set to show more weakness in the near term.The lower area of 11,100-11,150 is likely to offer minor support for the market in the next few sessions, but the market is expected to break below that support area in the near term.