Holding 21,950 can take Nifty to higher supports: Analysts
Nifty is facing downward pressure, and a drop below 21,950 is expected to initiate a sell-off towards 21,770, said technical analysts. However, the FII long-short ratio in the index futures stood at around 32%, suggesting that the markets might be nearing oversold territory. Analysts said if the Nifty closes above 22,150, it could present a buying opportunity. Some short-term trading recommendations include SBI, HUL, TCS, Emami, GMR Airports, Fiem Industries, Vinati Organics, and Astral.
KAPIL SHAH TECHNICAL ANALYST, EMKAY GLOBAL FINANCIAL SERVICES
Where is the Nifty headed? The current market trend has been showing signs of losing momentum, as evidenced by the sloppy ascent of the rise and the shrinkage of the size of candles. The index has been trading within a range of 21,800 to 22,800 for the past 11 weeks, and it is currently located at the lower band of the rising channel. However, a bullish confirmation will occur if the index crosses the 22,150 level while moving below 21,950 could lead to further selling pressure, likely up to 21,770. Bank Nifty has continued to underperform, with potential support lying around 47,000. It will remain under pressure if it sustains below 48,300.
What should investors do? The auto sector has maintained a bull run, and fresh, bullish participation has been observed from the FMCG and MNC spaces. Conversely, PSU banks and the Oil & Gas sector have experienced strong selling pressure. The Nifty FMCG appears to be a safer investment, with the FMCG index technically retesting a
