Nifty Forms Long Bearish Candle: Key Resistance and Support Zones

Nifty’s Performance on Tuesday

Nifty ended Tuesday’s session 6% lower at 21,884.50, forming a long bearish candle on the daily chart. The index also closed below both short-term and medium-term averages, indicating a bearish trend.

Key Resistance Areas

For traders, the 50-day Simple Moving Average (SMA) at 22,400 and 22,500 are crucial resistance areas. These levels will be important to watch as they may determine whether Nifty can break out of its current downtrend and move higher.

Important Support Zones

On the downside, the levels between 21,600-21,300 and 71,000-70,200 act as key intraday support zones. If Nifty breaks below these support levels, it could signal further decline and increased bearish sentiment among traders.

Market Sentiment and Strategy

Given the formation of a long bearish candle and the index closing below critical averages, traders should approach the market with caution. Monitoring the resistance at 22,400/22,500 and the support at 21,600-21,300 will be crucial for making informed trading decisions.