Palak Kothari, Senior technical analyst at Choice Broking
Indian equity benchmarks traded lower on Tuesday, extending their fall for the third straight session amid weak global cues. Asian shares slipped today, tracking an overnight decline on Wall Street.
On the domestic front, market participants also awaited September’s retail inflation data, due to be released on Wednesday.
Nifty closed below the 17000 level at 16983.55 level with a loss of 257.45 points, while the Bank Nifty closed the session at 38712.45 level with a loss of 380.65 points.
On the technical front, the Nifty formed a Bearish Marabozu on daily charts which suggests weakness in the counter. Nifty has given a closing below the middle band of Bollinger as well as 21 DMA which adds bearishness to the prices. The Hourly momentum indicator STOACHSTIC & MACD were trading with a negative crossover which suggests a downside moment in the upcoming session.
The support for Nifty has shifted around 16800 levels while on the upside 17250 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 38200 levels while resistance at 39500 levels.
Overall, Nifty can test the support level breaching below the same can show more downside rally.
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