Benchmark indices will exhibit weakness on Monday, as indicated by technical views in both daily and weekly timeframes, according to market analysts.
Nifty on a weekly scale has formed a doji candle, and on a daily scale, it has formed a bearish engulfing candle near the all-time high, indicating weakness, said Hrishikesh Yedve, assistant vice president of Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Both timeframes indicate a trend reversal in the Nifty with a negative divergence in the RSI, according to Aditya Gaggar, director at Progressive Shares. “We believe that the index is likely to oscillate in the range of 22,160–22,770.”
The Bank Nifty has formed a shooting star candlestick pattern near the all-time high, indicating strong resistance near 49,975, Yedve said. A sustained move below 48,342 could lead to further weakness in the index, he said.
Traders are advised to exercise caution, keeping an eye on geopolitical events, Shrey Jain, founder and chief executive at SAS Online said. Nifty may trade within a certain range, but staying above 22,200 points is crucial for a positive market outlook, he said.
GIFT Nifty was trading 7 points, or 0.03%, lower at 22,686.00 as of 6:39 a.m.