nifty today: Tech view: Nifty breaks below the support of 16,400; look for selling opportunities, say analysts

The index opened on a positive note at 16,474.95 but slid to as low as the 16,293.35 level. However, during the day, buying emerged at lows to take the index as high as 16,514.30. Eventually, it closed down 60.10 points or 0.37 per cent at 16,356.25.

A reasonable negative candle formed on the daily chart today, placed beside the small negative candle of the previous session. This pattern indicates choppy movement in the market with a negative bias, said Nagaraj Shetti, Technical Research Analyst,

Securities.



“The current choppy movement could extend for another 1-2 sessions and the lows to be watched around 16,200 levels. Strong overhead resistance is placed at 16,450-16,500 levels,” said Shetti.

Milan Vaishnav, Founder & Technical Analyst, Gemstone Equity Research, underlined that the Nifty oscillated between a 200-point range before ending with a modest cut. “From a technical perspective, the Nifty has slipped below 16,400 — this increases the risk of the index slipping into the wide trading range of 15,700-16,400.”

Ruchit Jain, Lead Research,
5paisa.com, said the trend for the markets has been clearly to ‘sell on rise’ as the hourly charts continue to exhibit a ‘lower top lower bottom’ structure.

The derivatives data also indicates cautiousness as FII’s again have more short positions outstanding in the index futures segment, he said.

“Until we see a change in the structure or data, traders should avoid bottom fishing and rather look for selling opportunities on pullback moves. The immediate resistances for Nifty are now seen around 16,520 and 16,610, while supports are placed around 16,260 and 16,170,” said Jain.

Bank Nifty

Bank Nifty also opened higher at 35,165.65 but fell to 34,831.75 during the day. However, buying around the bottom led the index to a high of 35,449.90. The index closed down 0.14 per cent at 34,946.15.

“The RBI policy turned out to be a non-event for the index as it ended on a flat note,” said Kunal Shah, Senior Technical & Derivative Analyst at

. “The index is stuck in a broad range between 34,500-36,000 levels where a significant amount of put and call writing has been witnessed. The undertone remains bearish as long as it stays below the immediate hurdle of 35,500.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not