The market witnessed heavy selling in the last hours yesterday with weak global cues and the Russia-Ukraine war taking a more serious stance. Due to this, on April 19, the market closed with a fall for the fifth consecutive day. Except oil and gas, all sectors were closed in the red mark. FMCG and IT were the top losers of yesterday. Their sectoral indices closed with a fall of nearly 3 per cent yesterday.
The BSE Sensex had closed at 56,463 yesterday, down over 700 points or 1.2 per cent. At the same time, the Nifty closed at the level of 16,959 with a fall of more than 200 points. Nifty had formed a bearish candle on the daily chart yesterday, which is a sign of weakness in the market.
Nagraj Shetty of HDFC Securities Says that a long negative candle has been formed on the daily chart. It looks to be indicating a downside break out towards the downside support at 17,000-16,800. The fall in volatility coupled with the last two trading sessions is indicating further weakness in the market.
Nagraj Shetty We believe that if Nifty goes below the support located at 16,800, then there may be further weakness in the near term and we may see Nifty going towards 16,200-16,000. On the other hand, if there is a pullback rally, then Nifty may face resistance around 17,100.
Along with the giants, there was a fall in the small-medium stocks in yesterday’s trade. Nifty Mid Cap had lost 1.4 per cent yesterday and Small Cap was down by 1.7 per cent.
Here we are giving you some statistics on the basis of which it will be easy for you to catch profitable deals. It should be noted here that the Open Interest (OI) and Volume of Stocks figures in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 16,764 and after that the second support is located at 16,569. If the index turns upwards, then it may face resistance at 17,215 then 17,471.
The first support for Nifty Bank is located at 35,804 and after that the second support is located at 35,267. If the index turns upwards then it may face resistance at 37,001 then 37,661.