Sell-on-rise likely in Nifty, broader market indices: Nagaraj Shetti
Nagaraj Shetti, Technical & Derivative Analyst, HDFC Securities, says “all three OMCs have seen some significant upside momentum from the lower levels. They are into a reasonable downward correction. We have seen some smaller upside bounces in the last session. Those bounces have eroded and all the three stocks in fact are into downtrend. More weakness is likely. I would not be surprised if there is another 5-7% downside in all the three OMC stocks.”
Do you think the market is readying for much lower levels from here on because there was no buying support at all on Friday?
Nagaraj Shetti: Rightly said. The market is hesitant to sustain at the higher levels. If you look at the near term, I am expecting more weakness is likely for the Nifty. But for the short term, Nifty is currently placed at the support around 21,800-21,850 odd levels and I am expecting upside, short-term upside bounce from the lower levels right now in the next one or two, this consolidation, yes, minor upside bounce from the lower level is likely to occur. But near term, the weakness is likely for the market as well as for the broader market as well.
For example, the Nifty Small Cap 100 went from 8,700 odd to closer to 16,000 to 17,000. Where do you see support on that index?
Nagaraj Shetti: Supports are placed around 13,200 odd levels. Having declined sharply from the higher levels, these broader market indices are consolidating, finding minor bases at the lower levels. There may be a smaller upside bounce. If you look at the Nifty versus these
