Hot Stocks: Garware Technical all set to hit fresh record highs; next target near Rs 1,900
Episode 2264, Feb 27, 2020, 12:30 PM
Indian Benchmark index continued to decline gradually post a depressive start for the week. The Nifty50 closed at 11,678, down 119 points on Wednesday.
On 04th February 2020, Nifty witnessed a gap-up opening and the gap was left unfiled around 11,765 odd levels. Indian bourses on 26th February 2020 again witnessed a gap-down opening and filled the left gap of 04th February and formed a Rounding Top formation on the daily charts.
The Nifty50 also closed below its 200-Day exponential moving average (EMA). Previously, on 04th October 2019, the index closed below its 200-Day EMA and witnessed a sharp bounce back thereafter.
The Nifty pack on the daily chart has given a breakdown from its upward rising trend line which was drawn by joining the immediate lows of 9th Oct 2019 and 03rd Feb 2020.
On the other hand, Bank Nifty has taken support near its 200-Day Exponential Moving Average which is placed at 30,100 level and closed above the said EMA.
On the lower timeframe, major technical indicators oscillated around their respective oversold zones. Though our view will remain bearish, the near-term pullback or sideways movement cannot be ruled out before the index resumes its southward journey.