Stock Market Today:
The Nifty50 had a gap-down opening and remained under pressure, forming a long, bullish candlestick pattern on the daily charts on February 22. Traders seem to be cautious ahead of the FOMC minutes due tonight as well as the RBI monetary policy meeting minutes, also due later today. Fresh nuclear warnings issued by Russia to West also dampened the mood at Dalal Street.
The Nifty has been making lower highs lower lows for the fourth consecutive session, and decisively broken the 200-day EMA (exponential moving average – 17,592) as well as upward sloping support trendline adjoining the lows of June 2022 and February 1, indicating negative strength in the market.
The next support for the benchmark index lies at the Budget day low as well as 200 SMA (simple moving average) of 17,350. If this level is broken, then there could be a possibility of sharp selling pressure in the market, experts anticipate.
The Nifty50 was trading at 17,539, down 287 points at the time of writing this article.
“The Nifty50 Index opened gap-down below 17,800 critical pivot, while also violated the 200-day EMA with a price intense move. Market breadth is oversold, while momentum wise, the index is approaching the oversold zone that might point to intermittent bounces, but any such bounce will be sold into as long as the index trades below 17,800,” Viraj Vyas, Technical Analyst at Ashika Stock Broking, said.
“The volatility also spiked sharply and moved close to 16 level intraday, making the bulls uncomfortable at Dalal Street. If it moves above 16-level will definitely spark higher selling in the index,” Viraj said.
India VIX, the fear index, jumped 12.3 percent to 15.73 at the time of writing this article. Technically, it climbed above 50-day EMA (14.56) as well as 100-day EMA (15.4).
The selling was across sectors with metals falling the most at nearly 3 percent. Bank and financial services lost close to 2 percent.
Bank Nifty has also broken its psychological 40,000 mark as well as 200-day EMA intraday but struggling hard to hold the same. Further it traded below upward sloping support trendline adjoining lows of June 2022 and Budget day, which is a negative sign.
The banking index fell 1.56 percent or 622 points to 40,051, forming a long bearish candle on the daily charts, with making lower highs lower lows for fourth consecutive session.
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