Nifty forms strong Bearish Candle on 18 Dec, FII net sellers indicate weakness: Experts
Nifty forms strong Bearish Candle on 18 Dec, FII net sellers indicate weakness: Experts
The support level for the NSE Nifty 50 index has fallen to 24,180, following a second consecutive day of decline on Tuesday. Technically, the index has formed a large red candle on the daily chart and breached its 100-day exponential moving average support around 24,360, signaling weakness, according to Hrishikesh Yedve, Assistant Vice President of Technical Research at Asit C. Mehta Investment Intermediates Ltd. He added that 24,180 is now a key support level, and if the index sustains below this level, it could extend its decline towards 24,000-23,900.
Shrikant Chouhan, Head of Equity Research at Kotak Securities Ltd, indicated that a fresh selloff could occur if the index falls below the 24,275 level, which could send the Nifty down to 24,200-24,125. He mentioned that 24,400 is a crucial resistance level, and a breakthrough above this could lead to a pullback rally up to 24,500-24,525.
Meanwhile, the Bank Nifty has been consolidating within a narrow range of 52,500-54,000, with a breakout on either side likely to dictate its next move, according to Yedve.
In terms of market activity, foreign institutional investors (FII) remained net sellers of Indian equities for the second consecutive day on Tuesday, offloading stocks worth Rs 6,409.9 crore. Conversely, domestic institutional investors (DII) turned net buyers, purchasing stocks worth Rs 2,706.5 crore, according to provisional data from the National Stock Exchange.
On Tuesday, the benchmark indices fell sharply, driven by weak global cues ahead of the US Federal Reserve's meeting. The NSE Nifty closed 332.25 points lower, or 1.35%, at 24,336, while the BSE Sensex dropped 1,064.12 points, or 1.3%, to settle at 80,684.45.
Among the sectoral indices, 11 out of 12 fell, with PSU Bank, Metal, Energy, Oil & Gas, and Auto sectors seeing the steepest declines. Only the Nifty Media index remained flat. In the broader market, the BSE MidCap and SmallCap indices ended lower by 0.65% and 0.52%, respectively.
