Technical View | Nifty forms bearish candle, experts say can slip below 17,000

Technical View | Nifty forms bearish candle, experts say can slip below 17,000

The Nifty fell plunged more than 300 points, extending losses for the third consecutive session on February 7, and formed a big bearish candle on the daily chart as the closing was lower than the opening level.

Traders seem to have turned cautious ahead of Monetary Policy Committee's three-day meeting that begins on February 8. Rising oil prices, and relentless FII selling also added to the selling pressure. All sectoral indices, barring Metal and PSU Bank, fell 1-2 percent.

The index decisively broke its 50-day simple moving average (SMA) placed at 17,440 and slipped to around 17,100, indicating that the fall could get extended to around 16,950 in the coming sessions, experts said.

Volatility also increased significantly to climb above the 20 mark, indicating choppy trade going ahead. India VIX, which measures the expected volatility in the market, rose 8.14 percent to 20.44 levels.

The Nifty started off lower at 17,456.30 and hit the day's low of 17,119.40 before recouping some of the losses. It settled at 17,213.60, with a loss of 302.70 points or 1.73 percent.

"A long bear candle was formed on the daily chart with minor lower shadow. This pattern signals sharp downside momentum in the market after the lower