5 days ago
Nifty Breaks Trendline Support as Selling Pressure Intensifies
The Nifty 50, an index that tracks major Indian companies, fell again on Thursday.
Its final price was pushed lower partly by a special Closing Auction Session.
Trading volume was the highest in 11 sessions, showing that many investors were selling.
The index also fell below an important moving-average level and a rising trendline.
Technical indicators suggest that its earlier recovery is losing strength.
Support is expected around 24,000 to 24,040.
If that support fails, the index could move toward 23,892 to 23,824.
In contrast, Bharat Heavy Electricals showed stronger buying and may rise if it stays above ₹434.5–435.
The Nifty 50 fell for a second consecutive session, ending at its lowest level in six sessions after losing more than 200 points from its intraday high.
The Closing Auction Session contributed to a downward adjustment in the final close, with the Nifty down 683 points from its recent high since August 3.
Trading volume reached its highest level in 11 sessions, forming a distribution day that signaled increased selling activity.
The index closed below its 50-DMA, while weaker MACD and RSI readings indicated fading recovery momentum and a break below rising trendline support.
HDFC Bank and Reliance Industries dragged the index lower, while Bharat Heavy Electricals broke out of a triangle pattern and retained a bullish technical setup.
- Who
- The Nifty 50, its heavyweight constituents HDFC Bank and Reliance Industries, and Bharat Heavy Electricals.
- What
- The Nifty 50 extended its decline, broke below trendline support and its 50-DMA, while Bharat Heavy Electricals recorded a bullish technical breakout.
- Where
- The Indian equity market, including the Nifty 50 and the listed stocks discussed.
- When
- Thursday; the article also refers to the Nifty’s performance since August 3.
- Why
- Selling pressure remained active at higher levels, with HDFC Bank and Reliance Industries together pulling the Nifty down by nearly 78 points.
Key facts
- Nifty close
- The index ended at its lowest closing level in six trading sessions.
- Volume
- Thursday recorded the Nifty’s highest volume in 11 trading sessions.
- CAS impact
- The Closing Auction Session caused a downward adjustment in the final index close for the second consecutive session.
- Decline since August 3
- The Nifty has declined 683 points from its recent high since the introduction of CAS on August 3.
- Nifty support
- The key support zone is 24,000–24,040; a weekly close below 24,000 could expose 23,892–23,824.
- Nifty resistance
- Immediate resistance is at 24,270–24,300, followed by 24,385 near the 20-DMA.
- BHEL setup
- A sustained move above ₹434.5–435 could open a possible upside toward ₹450 and then ₹458, with a suggested stop loss at ₹418.
Sources
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