The Nifty50 fell sharply and wiped out momentum of last six trading sessions to slip towards 10,750 levels on Friday. The index plunged nearly 200 points for the first time in last nine consecutive sessions, forming big bearish candle on the daily charts.
Concerns on global economy growth and threat of partial US government shutdown dented market sentiment globally, but the consistent fall in oil prices continued to support the market.
Experts expect the consolidation to continue in the coming sessions and the index is likely to defend crucial support of 10,700 levels, experts said, adding the trading volume could be low in coming week as FIIs generally go on leave during Christmas and New Year.
The Nifty50 after opening flat extended losses as the day progressed and touched an intraday low of 10,738.65 in late trade. The index closed 197.70 points or 1.81 percent lower at 10,754.
The Nifty lost half a percent during the week due to sharp correction on Friday and formed Inverted Hammer kind of pattern on the weekly scale.
"After a brief outperformace vis-à-vis global markets in the month of December Nifty50 appears to have resumed its downswing, perhaps in solidarity with global trends, as it signed off the last session of the week with a large bearish candle which has erased almost last 5 sessions of labored upmove," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
Source:https://www.moneycontrol.com/news/business/markets/technical-view-nifty-forms-inverted-hammer-pattern-on-weekly-scale-10700-crucial-for-bulls-3316671.html
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