Stocks

NSE Nifty 50 index may test support level at 11,723

Reuters | Updated on June 17, 2019 Published on June 17, 2019

File Photo   -  Bloomberg

The NSE index Nifty 50 fell as much as 0.6 per cent in the initial trade on MondayThe Nifty index has cut below a key support level at 11,795.85

The support is identified as the 14.6% Fibonacci retracement level on the uptrend from October 26, 2018 low to June 3 high

The index also breaks below its 20-day exponential moving average and has cut below June 7 low of 11,769.5

Breakdown suggests that index may test a support at 11,722.5, the 38.2% retracement level of the uptrend from May 14 low to June 3 high (wave 3)

The index's wave pattern suggests that it is in wave c of a three-wave downtrend. If the current wave travels the same distance as the wave a, the index may fall up to 11,667

Wave pattern further suggests that within wave c, the index is in the third sub wave of a five-wave downtrend

Published on June 17, 2019
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