Stock Market Today: On account of massive rise in fresh Covid cases on Wednesday, the Indian stock market is expected to witness sharp downside trends when the market opens today after a one day gap of Ramnavmi holiday. The stock market experts said that the opening upside gap of Tuesday has been filled completely and the opening downside gap of Monday has been partially filled (left by small margin). They said that NSE Nifty has current support at 14,200 and a sustainable move below 14,150 will mean a broad based weakness in the Indian share market.
Speaking on how stock market will behave in opening bell today Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "On Tuesday, Nifty opened on an upside gap of 169 points and started to show intraday weakness from the day's high since opening. The weakness got intensified in the mid to later part and Nifty could manage to show minor upside recovery from near the support of 14,200 towards the end. A long bear candle was formed on the daily chart with minor lower shadow. Technically, this pattern could mean a possibility of sharp downside breakout of the crucial lower support of 14,200 levels."
Shetty went on to add that Nifty has been showing lack of strength to sustain the highs recently and we observe a formation of consistent lower highs and repeated testing of lower 14,200 supports. After showing upside bounces from the lower supports for few occasions, Nifty is now placed at the edge of decisive downside breakout of the lower support as well as the range movement of the last one month.
"The lack of strength to sustain the highs continued in the market and the Nifty is now placed at the crucial support juncture of around 14,200 to 14,150. The chances of downside breakout seem higher. A decisive below the support is likely to drag Nifty down to 13,500 levels in a quick period of time. Any upside bounce from here could find strong resistance around 14370," Nagaraj Shetti of HDFC Securities concluded.
Standing in sync with HDFC Securities views Sumeet Bagadia, Executive Director at Choice Broking said, "If the NSE Nifty breaks its current support then at least 500 to 600 points correction looks possible while at Bank Nifty, if the current 30,700 support is broken then fresh corrections of up to next 1500 points below 30,700 levels seems possible."
Unveiling the trade strategy for in such a volatile stock market with negative to range-bound outlook Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Weakness in the markets is expected as fresh cases of Covid on Wednesday was near 3 lakh, which is huge. One should maintain sell on rise strategy keeping focus on quality stocks in pharma, IT and FMCG sector as these sectors are expected to remain strong."
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!