Technical View | Nifty forms large bearish candle on Manic Monday, experts say can slip to December lows

Technical View | Nifty forms large bearish candle on Manic Monday, experts say can slip to December lows

Market Fall



The Nifty50 plunged 3 percent in the biggest single-day fall since April 12, 2021, as bears dominated Dalal Street for the second consecutive session, which saw the index breach the psychological support level of 17,000 on February 14.

Weak global cues amid tensions between Ukraine and Russia and rising oil prices dampened the market sentiment and experts don’t rule out the index falling to 16,410, the swing low touched on December 20, in the coming sessions before resuming the uptrend.

The index formed a large bearish candle on the daily charts as the closing was lower than the opening level.

Also read: Manic Monday for Indian markets, here are 4 factors for the steep decline

The volatility also spiked to 22.98, the highest closing level since May 2021, up 23 percent from 18.68 levels on February 11, which indicates wild swings going ahead.

After opening gap-down at 17,076.15, the Nifty extended losses as the day progressed and hit the day's low of 16,809.65 before ending the session at 16,842.80, the lowest closing since December 21, 2021, down 532 points.

Also read: Gainers & Losers: 5 stocks that moved the most on February 14

"Nifty50 seems to have resumed its downtrend with a huge gap-down opening,