Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking
Nifty started the session around 14950 mark. Post some correction in the first hour of trade, it witnessed a pullback towards the opening level.
However, the bounce got sold into and the index then corrected till the end of the session to post a loss of about 200 points and end tad above 14700 mark. The corrective phase continues for our markets and post some consolidation, the broader markets too were seen under pressure ahead of the U.S. Fed Policy. The last hour correction in the banking index resulted into further pressure and lack of buying interest is now clearly resulting into a price wise correction as well. Nifty has ended around 14700 which is a crucial point now and a breach of this could then lead to a continuation of price wise correction towards 14500. On the flipside, 14850 - 14900 becomes the immediate hurdle now.
The Banking index has undergone a consolidation phase in last one month and the index has breached below its support. On the other hand, the Nifty midcap index too ended below its ‘20 DEMA’ indicating profit booking in this space after a stupendous rally. Amongst other indices, Auto index too is indicting signs of weakness and looking at the above scenarios, we continue with our advice to avoid aggressive trades and look for stock specific trading opportunities. (Share Manthan, March 18, 2021)
