More selling is possible if the Nifty falls below the 17,000 level of support.

  • Jan. 25, 2022, 11:12 a.m.

Several technical indicators are flashing red after the benchmark indices fell 2.6% on Monday amid rising concern over faster-than-expected rate hikes by the US Federal Reserve. If the Nifty breaks below the crucial support level of 17,000-the level from which the market bounced on Monday - the index could fall by as much as 16,700-16,800 in the near term, said analysts. The index closed at 17,149.10.The sell-off on Monday resulted in the Nifty ending below various short-term averages, which signals near-term bearishness. The Nifty is currently trading below the 50-day moving average of 17,505. It is also below the 100-day moving average of 17,640 and the 20-day moving average of 17,776.If the market tries to hold that level, there is a probability the market will try to hold that level, but if it breaks that level, a fall to 16,700 cannot be ruled out," said Rajesh Palviya, head-technicals and derivatives at Axis Securities. "17,350 would be an important level to watch out for in the coming days. My view is that the Nifty is likely to break 17,000 on the downside."The 21% spike in the Volatility Index, or VIX, which measures markets' perception of risk in the near term, to 20.84 on Monday points to the likelihood of further decline. 

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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