The market went into a tailspin and closed down 2.6 percent to below 19,700 points in the week ended September 22 and after trading in the green for three weeks in a row.
- Market Decline: During that particular week, the market experienced a sharp decline, with a 2.6 percent decrease in the index. The specific index mentioned is the Nifty50, which is a benchmark index of the National Stock Exchange of India (NSE).
- Closing Below 19,700 Points: The market closed below the 19,700-point mark, indicating that investor sentiment was negative during that period. Closing below a certain level can be seen as a bearish signal.
- Contrast with Previous Weeks: It’s mentioned that the market had been trading in the green for three consecutive weeks before this decline. This indicates that the market had been on an upward trend in the preceding weeks but faced a reversal in sentiment during the week in question.
The Nifty50 index’s potential support and resistance levels. Here’s a summary of the key points:
- Crucial Support and Resistance Levels: Experts suggest that if the bearish sentiment continues in the market, the range of 19,600 to 19,500 points is expected to serve as a crucial support level for the Nifty50. This support level is significant because it could potentially prevent the index from declining further. Conversely, on the higher end, 19,780 to 19,800 points is identified as an intermediate resistance level, followed by resistance zones at 19,850 to 19,900 points, and finally, the psychologically important 20,000-point mark.
- Bearish Momentum: The description includes mention of a long bearish candlestick pattern on the weekly charts, indicating a strong bearish sentiment. Additionally, the relative strength index (RSI) showed a bearish crossover, further supporting the view that the market was exhibiting bearish momentum.
- Analyst Perspective: Osho Krishan, a senior analyst for technical and derivative research at Angel One, commented on the recent market action, highlighting the decisiveness of the bears in pushing the index below key levels. However, he also mentioned that the 19,600-19,500 zone could potentially act as a cushion for market fluctuations.
- Resistance Levels: The expert mentioned potential resistance levels at 19,780-19,800, 19,850-19,900, and the significant psychological level of 20,000 points in the near term. These levels represent points where the market may face selling pressure or encounter challenges in moving higher.
