NEW DELHI: Nifty tested its 200-day exponential moving average (EMA) on Saturday, as it cracked below the 11,700 level in a response to disappointing Budget.
Analysts said the market trend turned weak and any recovery in the short-term could be sold into.There is no sign of trend reversal on the charts.
The ongoing correction may continue towards the 11,500 level.
Any bounce towards the 11,750-11,830 zone could be sold again.
Traders should refrain from bottom fishing at current levels and wait for data to signal a trend reversal as short- as well as medium-term trends have turned negative, said Chandan Taparia of Motilal Oswal Securities.For the day, the index formed a solid bearish candle on the daily chart.
It slumped 300 points, or 2.51 per cent, to 11,661.
The 200-day EMA stood at 11,654.Mazhar Mohammad of Chartviewindia.in said any consolidation cannot be ruled out on Monday.
However, as the trend appears to have turned decisively in the favour of bears, rallies can be used to create fresh short positions, he said.This analyst said if Nifty falls below 11,633, it will have the next logical target at 11,342.