Nifty Prediction for March 27: Long bearish candle on chart; RSI indicator 14

The Indian stock market witnessed a halt in its seven-day winning streak on March 26, with profit-taking in large-cap stocks leading to a nearly 1% drop. The Sensex fell 728.69 points, closing at 77,288.50, while the Nifty lost 181.80 points, ending at 23,486.85.

Nifty Chart Overview

On the Nifty daily chart, a long bearish candle formation suggests the onset of a short-term correction. The Relative Strength Index (RSI) 14 is below 30, indicating a potential oversold condition. Technical analysts are suggesting a potential downward correction in the near term.

Support and Resistance Levels

Immediate Support: Nifty support is at 23,400, coinciding with the 100 and 200-day exponential moving averages (EMAs).

Strong Support: A deeper support level is expected around 23,141, representing a 38.2% retracement from the recent uptrend.

Resistance Levels: Key resistance zones are anticipated at 23,550 and 23,600, with the 23,869 level marking a crucial resistance.

Expert Insights

Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty has breached the 23,600 support level. With the negative RSI crossover on the hourly chart, he sees further downside risk. Support is at 23,300, and any fall below this level could call into question the recent rally.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes the bearish trend could signify a healthy correction after a sharp rise. He predicts Nifty could find support near 23,400-23,200, with a potential bounce back towards resistance at 23,800.

Devarsh Vakil, Head of Prime Research at HDFC Securities, stated that Nifty remains above key moving averages, with immediate support at 23,400. If this level holds, it could signal the next phase of an uptrend.

Market Outlook

Despite the short-term weakness, experts maintain a cautious positive outlook for the market. The short-term downward correction could present buying opportunities near the support zones, but investors should focus on stocks with relative strength.