The short-term texture for the market still shows weak momentum from a technical view and another week of consolidation appears likely, according to analysts. The Nifty is consolidating within a rising channel pattern and has indicated weakness after the previous session’s red candle and formed a bearish engulfing candlestick pattern on a daily scale, according to Neeraj Sharma, technical and derivatives research analyst at Asit C Mehta Investment Interrmediates Ltd.
If the Nifty goes below 22,340, the slide may continue to 22,100–22,000 levels in the near future, Sharma said.
Another week of consolidation appears likely going ahead, Shrey Jain, chief executive officer of SAS Online said, advising traders to take a prudent and cautious approach. The Nifty’s support levels are expected to range between 22,350 and 22,450, while the Bank Nifty’s support is projected to be between 48,650 and 48,850, he said.
The short-term market texture is still on the weak side and 22,600 for Nifty would act as a trend decider level, according to Shrikant Chouhan, head of equity research at Kotak Securities.
The GIFT Nifty was trading flat at 22,590.00 as of 06:19 a.m.