Nifty’s weakness may continue, 19,500 is key support: Analysts
analysts have identified 19,500 as the immediate support for the Nifty, with a subsequent swing low support at 19,330.
They caution if this support is breached, there is a likelihood that the index could further decline towards the range of 19,000 to 18,900 in the coming weeks. Analysts suggest traders may want to explore potential opportunities in Reliance, HDFC Bank, IndusInd Bank, and Sun Pharma.
RUCHIT JAIN LEAD RESEARCH ANALYST, 5PAISA.COM
Where is Nifty headed this week?
The recent pullback in Nifty resisted around the 61.8% retracement of the previous correction.
FIIs have been selling in the cash segment and have 75% positions in index futures on the short side. The RSI oscillators in Nifty and Bank Nifty have negative crossovers on daily charts, indicating a weakening momentum. Thus, the data is bearish, and since global news flows are also negative, our markets could continue with its corrective phase in the near term.
In the coming week, 19,480 will be seen as the immediate support, followed by swing low support at 19,330. This month’s low at 19,330 will be a crucial level, which, if broken, we could see an extension of this correction towards 19,000- 18,900 in the next few weeks.
What should investors do? Traders are advised to stay cautious until the index surpasses the hurdle of 19,800-19,850 or the data hints at optimism.
Stocks such as SBI, Bandhan Bank, and Divi’s Lab have bearish setups. Selective stocks like IndusInd Bank and Sun Pharma (breakout above `1,170) can show outperformance. One should watch the Nifty Midcap100 index closely, as a breakdown below 39,500 can lead to a broader market correction.
MEHUL KOTHARI AVP — TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERS
Where is Nifty
