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By Malvika Gurung
Investing.com — The domestic market closed with losses for the third time in a row last week with benchmarks recording their worst week in six months and declining 2.5%. Indices tanked 1.77% and shedded 980.93 points, closing below the psychologically significant 60,000 mark on Friday.
Nifty slipped below the 200DEMA (double exponential moving average). In a note provided to Investing.com, Rupak De, Senior Technical Analyst at LKP Securities stated that the daily momentum indicator is in a bearish crossover and falling.
“The sentiment has turned extremely bearish; a further decline is expected from here, with a potential near-term reach of 17550. Resistance on the higher end is visible at 18000–18100,” he added.
Apurva Sheth of Samco Securities places immediate support for the index around 17,700 levels followed by 17,400 levels while capping resistance at 18,200 levels. “We would wait on the sidelines and not commit to fresh longs yet,” he notes.
Further, the index closed 1.75% lower on Friday, painted in red, led by the state-owned stock PNB (NS:) tumbling over 7%.
According to De, the Nifty Bank slipping below the 50EMA on Friday confirmed a bearish trend reversal, stating that the momentum indicator is in a bearish crossover and falling.
“The sentiment has turned extremely bearish; a further decline is expected from here, with a potential near-term reach of 41000. Resistance on the higher end is visible at 42000,” the analyst added.
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