If Nifty breaks 11,250 it can fall to 11,100, says Pradip Hotchandani.The S-P BSE Sensex and NSE Nifty 50 indexes registered fourth session of losses on Thursday.
In the last four trading sessions the Sensex has fallen 883 points or 2.26 per cent and Nifty has dropped 257 points or 2.22 per cent.
The losses in the benchmarks came on the back of sharp selloff in banking and financial services shares.
The sub-index of banking shares on the NSE tumbled 1,586 points or 5.29 per cent."After Finance Minister Nirmala Sitharaman announced surprise tax cuts the benchmarks staged a sharp jump and after such a move consolidation is on expected lines which we are seeing currently," Pradip Hotchandani, head of research at Prudent Broking Services told TheIndianSubcontinent.Important support on the downside for Nifty is placed at its 200-day moving average which is placed at 11,250, says Mr Hotchandani."If Nifty breaks 11,250 it can fall to 11,100 which is 34-day moving average," he adds.For the Bank Nifty, fall has been sharper than the Nifty and with current fall in Bank Nifty, the index has retraced 67 per cent from the recent high, Mr Hotchandani says."28,077 is important level for Bank Nifty if it breaks that on downside then it can test lows of 26,900-27,000," Mr Hotchandani said.Mr Hotchandani however adds that Bank Nifty will not see these levels before the Reserve Bank of India's Monetary Policy decision and if they break these levels traders can initiate short positions.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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