Resistance and Support Levels
The Nifty 50 index has been on a bullish trend for the past few weeks, with the index reaching new highs. However, if the index breaks today’s low, it could signal a further downside, with the next support level at 21600.
According to Moneycontrol, the weekly options data indicates that 21500 is expected to be the immediate crucial resistance for the Nifty, with support at 21300-21200 area. The index may surpass its next key resistance of 21500 area soon, and if it surpasses and sustains the same in coming days, then the next upward journey may begin towards uncharted territory, experts said. The immediate support may be at 21250-21000, but any correction from here on could be a buying opportunity, they advised.
Nifty50 Key Drivers of the Fall:
- Global sell-off: Risk aversion dominated global markets today, with major indices across the globe witnessing sharp losses. This negative sentiment spilled over to the domestic market, putting pressure on the Nifty.
- Profit booking: After a strong rally in the preceding weeks, profit booking emerged today, with investors choosing to lock in gains amid the uncertain global scenario.
- Sectoral headwinds: Broad-based selling was witnessed across most sectors, with IT, financials, and auto stocks leading the decliners. Weakness in heavyweight stocks like Reliance Industries and Infosys further added to the selling pressure.
Nifty50 Technical Outlook:
Key Levels to Watch:
- Immediate Support: 21600
- Immediate Resistance: 21800
- Crucial Support: 21000
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor before making any investment decisions
