Nifty Has Broken Down Crucial support

Currently, the market is not reacting as per the candle chart. It is reacting to only global sentiments and CORONA VIRUS news. If we see the chart of Nifty or Nifty Bank then the market has opened a gap down i.e. below important supports. In this case, the technical analyst is helpless and mutual funds, big investors are selling their holding stocks. Many global clues are participating in this market fall.

Below are some of that:

•  Dollar going towards lifetime high.
•  Gold making new lifetime highs on every day.
•  The main thing is CORONA VIRUS spreading rapidly in the world.
•  No medicine on CORONA VIRUS.

Nifty Bank Analysis: On the first trading session of this week, Nifty Bank has opened a gap down by 762 points and open equal to high. In whole day nifty bank has shown 1091 points moment and closed in red i.e. below strong support of 26600. The index has given bounce back from weekly trend line support around 26200 and closed between 26600 & 26200 i.e. support & resistance. Also, 20 DMA has cut down to its 200 DMA that means swing traders are negative.

Below are some positive indications:

•  RSI is trading below 20
• Weekly support around 26200
•  Dollar & Gold are trading near resistance 

Nifty50 Analysis: On the last trading session, Nifty has opened near its next support i.e. 10700 and given bounce back from next support i.e. 10300. We have to wait for the next opening if the market will open below 10300 then the next important support is 10000.

Below are some positive indications:

• Oversold RSI i.e. below 20
• Many large-cap stocks are trading at the lower price
•  May long term investors can show interest

Total sentiments are negative in the Indian market, so be careful before taking any position.

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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