Technical View: Nifty snaps 4-week gaining streak; 21,970 is the level to watch

The Nifty ended lower on March 15 on mixed global cues, amid selling in heavyweights across sectors even though smallcaps managed to clock gains.

After a smart pullback in the previous session, the Nifty50 made a weak start and extended the losses as the day progressed. It sank to the day’s low of 21,931.70, and managed to move above 22,100 but again slipped.

It ended the day at 22,023.30, down 123.40 points, or 0.56 percent, from the previous close. The index formed an Engulfing Bear candle on the daily chart.

The 50-stock index ended the week 2 percent lower, snapping a four-week winning streak.

On the daily charts, the Nifty managed to hold on to the support zone of 21,900–21,860 as of today. The 40-day exponential average (21,970) absorbed the selling pressure, said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

“So, until this zone is held, we can expect the upside momentum to resume. In terms of levels, 22,215 – 22,250 is the immediate hurdle zone, while 21,900 – 21,860 is the crucial support," he said.

Nifty Bank remained volatile and moved in the 46,310.50-46,802.55 range. It closed 0.4 percent lower at 46,594.10.

The banking index witnessed a volatile trading session, forming a Doji candle, which signals indecision in the market, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Immediate resistance for the index is at 47000, coinciding with the 20-day moving average (20DMA). A decisive break above the level can take the index towards the 47,500 mark, he said.

At the lower end, support is at 46,500-46,300, where the bulls are attempting to defend. A fall below this level may intensify selling pressure," Shah said.

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