SGX Nifty Tanks Below 17,150, Next Support at 16,800!

  • Stock Market Analysis

In the midst of a global sell-off, the Nifty 50 ended Friday’s session on a weak note, falling 1.72% to 17,327.35. As the index closed near its low, the weakness was expected to continue in the next session. However, the overnight plunge in the US markets led by increasing fears over a global recession took a heavy toll on the SGX Nifty which continued the downward momentum and broke the crucial level of 17,200. The SGX Nifty fell to a low of 17,127 on Friday, although some buying from the lower levels helped in a slight recovery and the index closed at 17,215.

Now, the opening session on Monday is sure to welcome investors with a noticeable gap down. So far in September 2022, whenever there had been a gap down opening, the buying from the lower level had supported the markets. This price action also denoted a range-bound market wherein selling from the higher levels and buying from the lower levels kept the markets oscillating within a broad range. 

Image Description: Daily chart of SGX Nifty

Image Source: Investing.com

However, the last level of 17,200 is a crucial one. If the market sustains below this level, then the next major support which cloud be seen on the screen is 16,800. This is not a one-day or a week analysis. This level could come on the screen by the October 2022 expiry. As indicated in my previous analysis, the broader strategy has now changed to a sell-on-rise and Monday’s fall would further confirm this trend. Buying on dips might not be an ideal strategy from here on. 

However, this should not be assumed as a one-way fall till 16,800. The market moves in waves and therefore a retracement from the current levels on the upside could easily come. As the benchmark index has taken a serious hit in the last two sessions and Monday would be the third one, a bounce back should not be surprising for traders, but all bounces are seemingly a selling opportunity till at least the Nifty changes its structure from a lower low and lower high to a higher low and higher high.   

How far the Nifty could bounce back? The bounce could easily be witnessed till 17,500. However, looking at the India VIX value of over 20 and the highest closing in 2.5 months, the volatility is surely coming back and therefore the bounce could be even higher. But the conclusion is, this correction might not be just a part of the previous rally, but an altogether trend reversal. 

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  • Mahamad Kathat @Mahamad Kathat
    bank nifty tgt send
    Like 0
  • hrishikesh sanap @hrishikesh sanap
    what's about the bank nifty ?
    Like 0
  • hrishikesh sanap @hrishikesh sanap
    what's about the bank nifty ?
    Like 0
  • hrishikesh sanap @hrishikesh sanap
    what's about the bank nifty ?
    Like 0
  • Ayush K Pal @Ayush K Pal
    Don't believe on chart, Nifty50 move on global news and economic factors. If China coup is true or Nuclear war break out then NIFTY will create new patterns in chart.
    Like 2
  • Pawankumar Yadav @Pawankumar Yadav
    thanks
    Like 0
  • Pawankumar Yadav @Pawankumar Yadav
    thanks
    Like 0
  • Pawankumar Yadav @Pawankumar Yadav
    thanks
    Like 0
  • Raju Shinde @Raju Shinde
    correct info going good
    Like 1
  • Sudipto Roy @Sudipto Roy
    On the daily chart Nifty touched exponential 50 DMA. Might get some support here. I will be very cautious to sell here or buy PE. Wait and watch is the best policy now.
    Like 2
    • Sujal Ajmera @Sujal Ajmera
      @Sudipto Roy it closed below it though Sudipto
      Like 0
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  • SURENDRA SINGH @SURENDRA SINGH
    very accurate analysis, following since last one month, thanks
    Like 0
  • Rahul Bagrecha @Rahul Bagrecha
    in my opinion Monday we will close in green and all butchering done
    Like 3
  • dn stock @dn stock
    Perfect 👌
    Like 1
  • Rahul soni @Rahul soni
    thanks 😊
    Like 0
  • kamlesh kushvaha @kamlesh kushvaha
    pls make.some feedback on tata motors and tata power targets in 1 year.
    Like 1
    • navneet kumar @navneet kumar
      dono share se paisa bnana filhal bahut muskil ho gya.thoda sa upr jata h phir ludhak k niche aa jata h.bahut downward share h dono.kb tk chalega kaha nh ja skta.
      Like 0
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  • Pravin Kamble @Pravin Kamble
    👍👍👍
    Like 0
  • Madhugunjan Kalita @Madhugunjan Kalita
    ITS a great anlysis about nifty.Need analysis about usd- INR FOR COMING WEEK.ABOUT THE MONTHLY CLOSING.
    Like 2
  • Anand Chine @Anand Chine
    Nice Elaboration Mr. Aayush! Can you please make some comments on Banknifty and Federal Bank?
    Like 0
  • Anand Chine @Anand Chine
    Nice Elaboration Aayush! Can you please make some comments on Banknifty and Federal Bank?
    Like 0
  • Anand Chine @Anand Chine
    Nice Elaboration Aayush! Can you please make some comments on Banknifty and Federal Bank?
    Like 3
  • deepakcoach sharma @deepakcoach sharma
    Ayush -try to understand market Dynamics and make comment accordingly
    Like 2
  • Janarthanan Kannan @Janarthanan Kannan
    ablearrows
    Like 1
  • Janarthanan Kannan @Janarthanan Kannan
    ablearrows
    Like 0
  • Om Sharma @Om Sharma
    Like 0

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