Nifty, Bank Nifty can continue to slide as shorts turn, warns Rajesh Palviya

Equity markets are likely to remain under pressure in the short term, because roller trends and technical indicators determine a further downward disadvantage in both Nifty and Bank Nifty, according to Rajesh Palviya, Senior Vice President – Technical and Derivate Research at Axis Securities.

“So, looking at the overall structure that it is only on the weaker side. If we also go with the Rollover data, the Rollover clearly suggests that Shorts have been rolled for this series,” Palviya now told Et. He added that August Series ended with Nifty Down 1.2% and Bank Nifty fell nearly 4%, while Fii’s Netto Short remained and added more short contracts in the September series.

The technical photo reinforces this weak setup. “Both indices are now acting below the 200-day advancing average, which is also a sign of weakness for the short-term perspective for short-term,” said Palviya.

He emphasized 24,500 as an important level for Nifty, warning that persistent trade could drag the index to 24,200 or even 24,100. Before Bank Nifty he warned that the trend bearish will remain, unless the 54,200 will be recovered, with possible downward goals at 53,400 and 53,200.

“This is almost the second consecutive week in which we make a lower high-last formation. So it shows that persistent delivery pressure also takes place in Bank Nifty,” he added.

Palviya also noted weakness in heavyweights like reliance, which slipped below its key support zone post agm, but emphasized that the broader market will be dictated by rollover positioning and index levels. This counter and maybe in the down move Stock can correct Further Towards 1320, just 1300 zone, “He said, Adding that a breakout above 1,440 could activate a new rally. Although carefully on the general market, Palviya identified Britannia as a buy candidate with goals of 5,980-5,990, and presented shorts in LIC with a downward target of 830.