The index saw a gap-up start and filled up the gap area between 13,898 and 13,930 levels.
“But it stumbled near the 20-hour moving average and a falling trendline, which were present near the 14,000 level. Nifty breached the 61.8 per cent retracement of the December-January rise i.e. 13,750 as well as January 28’s low of 13,713. The next key level on the downside is at 13,500. On the higher side, the 13,800 level will act as an immediate resistance with a crucial one at 14,000,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
The index has decisively closed below its 50-day simple average, said Mazhar Mohammad of Chartviewindia.in.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com“Unless the index recovers and closes above the said average, whose value is now placed around 13,720 level, this market could be in for a bigger correction with initial targets placed around 13,200 level. In case the index closes above the 14,000 level in the post-Budget session, any fresh buying can be considered as the probability of a near-term bottom being in place,” Mohammad said.
Meanwhile, a long negative candle was formed on the weekly chart after a gap of four months.
ETMarkets.com“This candle has breached the immediate weekly support of the 10-week at 13,720 level. This moving average was offering support to Nifty in the past. Hence, this market action could be confirmation of a top reversal pattern as per the larger timeframe chart,” said Nagaraj Shetti of HDFC Securities.
