Nifty slipped below its 100-DMA amid broad-based selling led by Technologies names - Swastika Investmart Ltd

Mr. Santosh Meena, Head of Research, Swastika Investmart Ltd

Nifty is continuing its corrections after a minor pullback where it has again slipped below its 100-DMA. The selling can be attributed to rising cases of omicron variant in India along with other countries whereas FIIs are also continuing to hold their hand on the sell button. There was a sharp selling on Tech stocks in the USA in Friday's trading session and the same was replicated in our market where the Nifty IT index ended with a cut of 2.7% however there was broad-based selling because there was no sectorial index that ended on a positive note. The market may continue to remain volatile amid news flow related to the omicron variant.

Technically, 16800-16700 is a critical support zone for the nifty where we can expect a bounceback while below this zone, 16400 will be the next important support level. On the upside, 17000 will act as an immediate intraday resistance for tomorrow while 100-DMA of 17181 will be the next hurdle; above 100-DMA, we can expect a short covering move towards the 17300-17350 zone.

Banknifty still manages to close above its 200-DMA that is currently placed at 35700 level. If it starts to trade below this level then we can expect further weakness towards the 35000 level otherwise it may witness a bounceback. On the upside, 36000 will be immediate and intraday resistance while 36500/37000 will be the next resistance levels.

Source : Equity Bulls

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Nifty 100DMA SwastikaInvestmart Commentary MarketCorrection