Sunday, February 25, 2024

Nifty may hit 52-week low

The market is in a bearish mode and the 3,800 level for the S&P CNX Nifty is no longer safe. There are indications that the Nifty could trade below 3,800 on Monday and is likely to revisit its September-30, intra-day, 52-week low of 3,715. The support for the Nifty is seen at 3,700 and 3,650 thereafter. However, the bearish view will be negated if the index closes above 4,000 next week.
According to a technical analyst at Motilal Oswal, the Nifty broke the crucial level of 3,940 (38.2 % retracement level of the fall from 4,303 to 3,715), though it managed to close above the important support level of 3,800. The index has bounced back from these levels thrice, indicating the importance of support at these levels. The daily RSI has turned downwards from its trigger line, indicating selling pressure at higher levels.

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