Will the market decline increase on Monday or will there be a recovery? This is the biggest question, because on Friday Nifty and Sensex closed down by more than 1%. The support of 25000-25100 also did not work. Market cap of about 6 lakh crores was wiped out. In such a situation, the question in the minds of investors is whether the red color will deepen in the market on September 9 or will there be a recovery? Let us know the answers to these questions.
According to Shrey Jain, CEO and Founder of SAS Online
Shrey Jain, CEO and Founder of SAS Online, says that the reason for the decline in the market is weak global signals and regulatory challenges. Before the US employment data comes, investors chose profit booking in the record level market. If we look at Nifty, it has gone below the 20-day exponential moving average (DEMA). Which is indicating further decline. According to 50 DEMA, 24,500 is becoming a critical support. In view of these developments, it would be wise to avoid aggressive trading strategies and apply strict stop-losses on existing positions.
AVP Technical and Derivatives Research Hrishikesh Yedve says
Hrishikesh Yedve, AVP Technical and Derivatives Research, Mehta Investment Intermediates Ltd, says that the week started on a positive note in Nifty, but global instability affected the market sentiments. Looking at the whole week, the volatility index INDIA VIX has seen a jump of 12.97%. Technically, the market has broken the 25,000-25,100 support on Friday. A weekly bearish engulfing candle is seen forming. In the daily chart, Nifty closed below the 21-Day Exponential Moving Average (DEMA) which is indicating further weakness. Now the important support is at 24,480. Any bounce in the short term is an opportunity for profit booking in the market.
Opening with a gap-down on Friday
Talking about Bank Nifty, it opened with a gap-down on Friday. Whereas the negative closing was at the level of 50,577. Technically, the index is forming a big red candle on the daily chart, which is also giving negative signals for the future. On the upside, there is resistance at 50,940 near the 50-Day Exponential Moving Average (DEMA). Any bounce around 50,940 should be used as profit booking.