: Share Market Weekly Technical Market Outlook #IndiaNEWS #Business The Indian share market observed a ruthless sell off during last week and hit a 52 week low amid rising inflation, hike in interest

Share Market Weekly Technical Market Outlook #IndiaNEWS #Business
The Indian share market observed a ruthless sell off during last week and hit a 52 week low amid rising inflation, hike in interest rate and increasing Covid cases once again. Rising crude oil prices and continuous selling by the foreign investors is creating chaos among traders and investors as well.

Sensex wiped off 2943 points or 5.42 percent while Nifty lost 908.3 points or 5.61 percent in a week. While Banknifty shed 5.05 percent as well. Overall performance of Nifty remained awful as all 50 stocks closed on the negative side in weekly figures. During last week in Nifty stock, not even a single scrip ended on a positive side whereas ONGC declined 14.09 percent. Nonetheless no sector ended in green while Nifty IT, Metal and PSE lost out more than 8 percent each. Whenever the market tanks 20 percent from its peak, it is technically termed as the “bear market???.
Currently the Indian market remains at the edge of 17.7 percent fall. Coming to the OI Data of Nifty,on the call side highest OI witnessed at 16000 followed by 15700 strike price while on the put side, the highest OI was at 15000 strike price. Closing above 15800 Nifty would only define a clear trend for taking a long position till then sell on rise is anticipated.
INDIA VIX jumped 16.24 percent compared to last week and settled at 22.76 indicating volatility is going to remain intact. On the Technical Front, The Nifty has formed a bearish candle with a gap down in a weekly chart which indicates more weakness ahead.
Simultaneously in Friday closing daily chart Nifty has formed Doji pattern suggest indecisiveness as well. Indicators such as ATR and ADX remained on the weaker side. However, short term buying opportunities are anticipated in stocks and sector specific. The Nifty may find support around 15000 followed by 14850 levels while on the upside 15750 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 31200 levels while resistance at 33800 levels.
Long term investors may find it the right time to stay invested in blue chip companies or Index ETF as well.Accumulate quality stocks at Dips as market valuation is getting very attractive.Use current weak sentiment to make a good portfolio.
Om Mehra
Research Associates
Choice Broking
Source: Choice India

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