Sensex cracked 1,628.01 points, or 2.23%, to end at 71,500.76, while the Nifty 50 ended 460.35 points, or 2.09%, lower at 21,571.95. Nifty 50 formed a reasonable negative candle on the daily chart with a long upper shadow. The huge opening downside gap remains partially filled.
Also Read: Indian stock market: 6 key things that changed for market overnight - Gift Nifty to upbeat US retail sales data “Technically, Wednesday’s pattern indicates a significant reversal pattern on the downside and unfilled opening downside gap could be considered as a bearish breakaway gap. Normally, such bearish breakaway gaps are formed near important top reversals," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities. The recent upside breakout of the consolidation pattern has been nullified and the Nifty is currently moved below the 10-day EMA at 20,740 and is now placed at the edge of breaking below another support of 20-day EMA at 21,570 levels, he added.
According to Shetti, the short-term trend of Nifty seems to have reversed down sharply. There is a higher possibility of Nifty sliding further down to the next lower support of 21,000 levels in the near term. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Here’s what to expect from Nifty 50 and Bank Nifty today: Examining the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking said the call side revealed the highest OI at 21,800, followed by 22,000 strike prices.
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