The Nifty 50 recorded selling pressure throughout the week, achieving the first downside target of the Head and Shoulders pattern (around the 24,200-24,250 zone) on October 25, with the formation of a bearish candlestick pattern on the daily charts accompanied by above-average volumes. Hence, experts expect the index to breach its August low (23,894), which is a crucial support level in the coming sessions. Below this level, the 200-day EMA (Exponential Moving Average) at 23,455 cannot be ruled out. However, any bounce that occurs towards the 25,600-25,700 zone is unlikely to be sustainable. For the Bank Nifty, the next support is expected to be around the 50,200-50,000 area; below this, the 200-day EMA (49,668) is a possibility, while resistance lies at 51,100.
On Friday, the Nifty 50 plunged 219 points to close at 24,181, and the Bank Nifty dropped 744 points to close at 50,787, with overall market breadth favouring bears. Approximately 2,138 shares declined compared to 376 advancing shares on the NSE.
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