Nifty fell for the fourth day in a row though the declines were marginal. Auto, pharma and energy stocks were the weak links though the IT sector showed strength. The Nifty remains weak as the index failed to reclaim the 200-DMA on the hourly chart, with bears continuing to drag Indian equities lower.
Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities sees a bearish outlook for Nifty given the formation of continuous lower tops. “The momentum indicator RSI is in a bearish crossover and is also forming lower tops, indicating weakening momentum. The trend continues to remain weak, with the 25,700 level appearing vulnerable to a breakdown. A decisive breach below 25,700 could trigger a swift next leg of correction. On the upside, resistance is placed around 25,900,” De said.
Here are 2 stock recommendations for Friday:
