Business News/ Markets / Stock Markets/  Why the market trend remains bearish in the short to medium-term

Nifty remained volatile throughout the past week before closing with a weekly loss of ~1%. As the benchmark index has remained below the 200-day moving average, the trend remains bearish in the short to medium-term. The momentum indicator RSI is in bearish crossover and falling. On the lower end, support is placed at 16750/16500. On the higher end, resistance is placed at 17200. 

The BANK NIFTY index witnessed a tough fight between the bulls and bears and formed a doji candle indicating indecisiveness. The index broader trend remains negative and below 39,000 the sell-off will get aggressive which will decline the index further to 38,000-37,500 levels. The bulls will gain strength only once it breaks above the 40,000-level on a closing basis.

The Nifty Financial Services Index has fallen below the 50 SMA on the weekly chart, suggesting a bearish trend. Furthermore, on the daily chart, the index encountered resistance at the 14DMA before falling lower. The momentum indicator, RSI, is in a bearish crossover. On the lower end, support is placed at 17,000/16,700.

On the higher end, resistance is placed at 17,850.

The NIFTY IT witnessed selling pressure throughout the week and aggressive selling pressure was visible from higher levels. The index remains in a sell-on-rise mode with an immediate hurdle at 30,000 levels. The index has breached its previous swing low and has given a decisive breakdown from the rising trend line. The down move can drag down the index toward 26,000 levels.


The stock has formed a bullish hammer pattern on the daily chart, a bullish reversal candle. The stock has taken support at its 200-ema which will act as a cushion for the bulls. The momentum indicator RSI is showing signs of reversal from the oversold territory. The stock support is seen at 850 and the potential upside targets are 925/950.

Bajaj Finance 

It has been in a downtrend for the last several days as the moving average is sitting above the price. On the daily chart, the 14DMA had acted as resistance to the rising price. Besides, the stock has fallen below the recent consolidation. The momentum indicator RSI is in a bearish crossover. Over the short term, the stock may slip further toward 5250. Resistance is visible at 5800 on the higher end.

The author, Kunal Shah is Senior Technical & Derivatives Analyst, LKP Securities.

Disclaimer: The views and recommendations shared by the analysts are their own and Mint is not responsible.

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Updated: 27 Mar 2023, 02:19 PM IST
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