Indian stock markets ended significantly lower on Friday, March 27, with both the benchmarks – Sensex and Nifty – shedding over 2 per cent, ending two sessions of sharp gains, as uncertainty around ongoing talks between the United States, Israel and Iran unsettled investor sentiment. The sharp fall reflects rising caution among investors as global uncertainties continue to weigh on market sentiment.
“On the weekly chart, Nifty has formed a long-legged “Doji” candlestick with nearly identical open and close levels, hinting at potential trend reversal. However, confirmation requires a breakout above this candle’s high. The recent swing high of 23,465 now acts as a key resistance; a move above it could trigger short covering. On the downside, the swing low at 22,471 offers near-term support,” Rajani added.
Meanwhile, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “after witnessing a sustainable bounce back in the last couple of sessions, Nifty witnessed a sharp fall on Friday has and closed the day lower by 486 points. After opening on a weak note, the market continued to slide down for better part of the sessions. There was no indication of any meaningful recovery in the middle part and Nifty finally closed near the lows.”
“A long bear candle was formed on the daily chart which indicates sharp reversal down in the Nifty after a pullback. This market action signals a formation of new lower top reversal pattern at 23465 on the daily timeframe chart. This is in line with the ongoing bearish pattern like lower tops and bottoms of the last one month,” Shetti said, adding, “the underlying trend of Nifty has turned down sharply after a recent pullback rally. One may expect further weakness down to 22450 levels and lower in the coming week. Positional support is placed at 22000. Immediate resistance is placed at 23200.”
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