Technical charts suggest some support at 15.670, followed by 15,400, but analysts do not rule out a revisit to levels below 15,000. Fundamentally, while analysts say bottoming at this stage is futile, given the difficult global conditions, levels around 15,000 on the index would look appealing, the analysts said. The analyst said while advising investors to be cautious at the moment.
“Maybe another 4-5%, if the indices drop we can start gnawing because we don’t know exactly where the bottom will be. What we need is to start buying when we think we think it’s going to be.” the potential for decline is lower than the potential for gain”. Sandip Sabharwal says:
Sandeep Bhardwaj, Managing Director at, said there was a huge gap between the inflation rate, at 8.6% in May, and the 10-year US bond yield, at 3,187.
“To close this huge 5.4% gap between the two, the Fed must contain inflation by raising interest rates. If 10-year yields in the US rise to 5%, we’ll see the table. The balance sheet is starving many companies.The yield on the US 2-year bond rose 3% and is now trading at its highest level since 2007, and its gap with forward yields 10 years is now less than 5 bps, which is the case for a sharp downturn in the stock market,” said Bhardwaj.
Bhardwaj said virtually all recessions in the US in the past 100 years have been caused by a rising dollar, rising interest rates and rising crude oil prices.
“Even this time, the scenario is the same. If we look at the technical chart, Nifty50 has taken a breakout from a bearish flag pattern on the daily timeframe and has approached a key support level. is at 15.670. If the index breaks this level, it will lead to a continuation of the low-high and lower-low pattern on the weekly time frame, indicating a mid-term bearish bias. predict it will slide down, below 15,000 if support breaks,” Bhardwaj said.
From a low of 15,684, the index has recovered some of its lost points and traded at 15,740.95 on Monday afternoon, down 460.85 points or 2.84%. The 15,000 level is still 4.8% away from Monday’s level of 15,754.55.
FYERS’ Abhishek Chinchalkar said Nifty50 has dropped back to the 15.670-15,750 support zone.
“This is an important support area for the index, as it has held for the past three months. A break and sustainability below this zone will open the door for a continuation of the decline towards 15,000. In the opposite direction, 16,000 now become Mr.
Shrikant Chouhan of Kotak Securities said Nifty50 falling below 15,700 would be a major downside event for the market.
“In such a situation, Nifty50 will drop to 15,500 / 15,400 in the short term. Additionally, it will continue to come under selling pressure due to the removal of long-term support levels,” he said.
Pritesh Mehta, Lead Analyst for Institutions at YES Securities, said the presence of bearish, ultra-high and negative anchors since April 2022 has led to a sharp decline in equities. Nifty50.
“A breakout of a bearish tortoise on the P&F chart (points and figures) implies further weakness in the near term with the vertical target seen around 15,350. Our custom Top 10 Nifty The index has reversed from the top, trading below the 200-DMA. We expect it to trade below the May 2022 low, showing the weakness in the index is enormous. Even the intermarket setup is in disarray,” Mehta said.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of the Economic Times)