07 Dec , 2021 By : monika singh
Following Friday's throwback, Nifty continued to trend lower, forming another bearish candle. The selling pressure intensified as it broke below the 17,000 mark, eventually forming another large bearish candle. Nifty ended at 16,902, down 295 points. Its breadth remained negative, with 49 out of 50 stocks settling in the red.
The day's high (i.e. 17,217) could turn out as an immediate hurdle zone and sustenance below the same is likely to keep the near-term outlook negative.
Most of the Nifty stocks are going through the corrective phase as their 14-day RSI reading is seen below levels of 70. Meanwhile, Bank Nifty was holding ground during the first half of the session but it broke below the 36,000 mark. Shifting range lower, 36,500 should be considered as an immediate resistance zone.
Recommendation
Sell UPL December future near Rs 720-723
Stop loss Rs 742
Target Rs 680
After a swift decline, recovery in Monday's trade found stiff resistance near Rs 735 zone. The appearance of a large upper shadow ensures the influence of resistance at play.
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