Nifty formed a Bearish inverted hammer kind of candle with long upper shadow on the daily chart, which indicates that follow-up activity was missing and every bounce was being sold.

On the daily chart, Index formed a bearish candle, suggesting weakness for the next trading sessions.

Sensex fell 1119 points from the day’s high and Nifty slipped below the psychologically vital 17000 mark as the market awaited gross domestic product data (GDP) for the second quarter.

Sensex ended the day 195.7 points, or 0.34 percent, lower from the previous day’s close at 57064.8, while Nifty closed 70.75 points, or 0.41 percent, down at 16983.20.

In a highly volatile trading day, the street began on a very positive note on expectations of record GST numbers for November in line with the trends shown by e-way bills. However, post the views of the Moderna CEO on the Omicron Variant, markets witnessed selling pressure. While key data points for November like the Auto numbers were seen playing out, profit-booking by FPI kept investors watchful. Smallcap 100 index however was seen buzzing around through the day on the back of the MSCI semi-annual review.

Tracking positive closure of the US and European markets, domestic indices started the session on a strong footing following the US President’s announcement ensuring that economic lockdowns are currently off the table. However, the optimism was quickly substituted with a sudden sell-off in the domestic market as global equities slipped into negative territory following Omicron experts’ advice to be cautious. Defying the market trend, IT and healthcare stocks along with mid and small caps traded with gains.

Nifty opened flattish but witnessed good pull back towards 17325 marks in the initial part of the day. It formed a Bearish inverted hammer kind of candle with long upper shadow on daily scale which indicates that follow up activity is missing and every bounce is being sold. Now till it holds below 17200 zones bounce could be sold and weakness may be seen towards 16800 and 16500 zones whereas medium term hurdles can be seen at 17350 and 17500 zones.

Nifty witnessed sharp swings in both the directions. In the beginning of the session, the index saw strong momentum that pushed the index beyond 17300. On the higher side, however, the bounce fizzled out near the upper end of the dynamic falling channel and the 40-hour exponential moving average. Thereon, the bears took charge and dragged Nifty below 17000. Going ahead, the low point of the recent Doji formation i.e. 16782 will be the key support to watch out for. Till that holds the Nifty can go for a base formation in the range of 16800/17200.

Index has given closing below 21 and 9 day moving average, which points out that bears are active. Daily momentum indicator MACD and Stochastic traded with a negative crossover, which suggests bearish movement in the upcoming session.

For Nifty, immediate support is at 16800 and breach of it can see the index slip to 16600/16500 level, while resistance is at 17350.

Now till it holds below 17200 zone, the bounce could be sold and weakness may be seen towards 16800 and 16500 zones, whereas medium-term hurdles can be seen at 17350 and 17500 zones

Sector Wise :- Metal index fell over 2 percent followed by banks, auto and power while IT, Realty and FMCG closed in the green. Midcap and smallcap indices ended in the green.