The benchmark indices fell sharply by nearly 2 per cent each, extending their decline for the third straight session on Friday, amid a bearish trend in global markets. Sensex was in a downward spiral of 1,020. It took 80 points or 1.73 per cent to end at 58,098. The Nifty fell 302.45 points or 1.72 per cent to close at 17,327. Mid-cap and small-cap indices on the BSE fell 588 points and 564 points. Banking, consumer durables, and auto shares, were the top sectoral losers with their BSE indexes falling 1159 points, 666 points, 760 points and 514 points.
Here is a look at what analysts said about the direction the market is going to take today.
The daily chart shows an indecisive candle that has caused the Nifty to fall sharply. The index has fallen below the crucial short-term moving average, as a result of the sharp fall. The momentum oscillator on the daily timeframe is in a bearish crossover. The trend looks negative, which could take the Nifty towards 17,000 over the short term. The long bearish candle on daily charts and the long bearish candle on daily charts are generally negative, which is why the Nifty has formed a lower top formation. A resistance zone could be created by 17,500 -- 17,600 levels for positional traders. The support level would be the 50 day SMA or 17,250 on the flip side. If the index falls below the 50 day SMA, it could test the level of 17,150 and retreat further until the 200 day SMA or 17,000. The support for Nifty has shifted around 17,150 levels, while on the upside 17,700 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 39,000 levels and resistance at 40,800 levels. The Nifty is looking weak on charts that can test the 17,150 level in the upcoming week.