Charts indicate continuous bearish trend

For the just-concluded week, the benchmark indices witnessed selling pressure at higher levels as BSE Sensex was down by 880 points. Among sectors, almost all the major sectoral indices registered profit booking, but realty stocks lost the most, as a result Nifty Realty index shed over two per cent.

Technically, on daily and intraday charts, the index has formed Double Top formation and reversed. Post reversal, Nifty comfortably trading below 20 and 50-day SMA (Simple Moving Average), which is largely negative.

In addition, on weekly charts, it has formed bearish candle, which indicating continuation of weakness in the near future.

“We are of the view that, as long as the index is trading below 20-day SMA the weak sentiment is likely to continue. For the traders now, the 66,300 would be the immediate hurdle. Below the same, the index could slip till 65,000-64,700 points,” says Amol Athawale of Kotak Securities.

On the other side, above 66,300 or 20-day SMA it could retest the level of 66,600-66,800 points. For Bank Nifty, as long, it is trading below 44,500 or 50-day SMA the weak sentiment is likely to continue. Below which, it could slip till 200-day SMA or 43,200-43,000. On the flip side, above 43,900 a minor pullback rally possible till 44,300.