Stock Market Red Alert: Market will face further decline, know why there are selling signals…

Stock Market Red Alert: There is a continuous selling environment in the stock market. The indices were expected to go up in the earnings season, but for the last several days, Nifty has broken its major support. On Friday, Nifty also closed below 23 thousand 500, which is a sign of weakness in the market.

On Friday, Nifty closed at the level of 23 thousand 432, which is currently the make or break level. Further weakness here can take Nifty straight to the level of 23 thousand. Although Nifty still has a big support level of 23 thousand 263, but there is a fear that this level may also be broken due to selling pressure.

If we look at the daily chart of Nifty, at present Nifty has broken the support of 23 thousand 526 level (previous swing low), which is a sign of weakness. Now the next support on the daily chart is the level of 23 thousand 263.

Jatin Gedia of Sharekhan said that on the daily chart we can see that Nifty is reaching the low of November 2024 (23,263). We can see positive divergence on the daily momentum indicator RSI. Thus, we will handle the decline with trailing stop loss at 23 thousand 597 level.

Rupak De of LKP Securities said that the bearish pressure is increasing as the index has closed below 23 thousand 500 for the first time in many days, because the Nifty has closed below 23 thousand 500 for the first time in many days.

Nifty remains below the important 50 EMA, which points towards further bearish trend. The RSI remains in a negative crossover, indicating weak momentum.

Stock Market Red Alert. The short term trend in Nifty remains bearish, with a possibility of a fall towards the level of 23 thousand 300 or 23 thousand. On the upside, resistance is being seen in Nifty at 23 thousand 550-23 thousand 600.