Technical View - Dec 21, 2020 - Mr. Subash Gangadharan, Technical and Derivative Analyst, HDFC Securities

Markets ended with heavy losses on Monday after a bounce back seen in the morning session. Selling pressure accelerated after a high of 13778 was touched. The Nifty fell more than 600 points from the highs of the day to touch a low of 13131. A recovery towards the end of the session helped to curb the losses. The Nifty finally lost 432.15 points or 3.14% to close at 13,328.4.

Broad market indices like the BSE Mid Cap and Small Cap indices lost more, thereby under performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

All the sectoral indices ended in the red. The top losers were the BSE Metal, Oil and Gas, Realty and Auto indices.

Major Asian markets have closed on a mixed note. European indices like the FTSE, CAC and DAX have ended lower.

Technically, with the Nifty correcting sharply and closing below the crucial supports of 13447, the index is now in a short term downtrend. Immediate supports are now at 13131. Any pullback rallies could find resistance at 13447-13500.

Source : Equity Bulls

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