Asian market trading lower Nifty 50 on the SGX were trading 20.50 points down at 9,844 indicating a gap down opening for the NSE. On Friday market Nifty 50 index fell 66.75 points or 0.67% to settle at 9,837.40, its lowest closing level since 14 August 2017. While the Sensex fell 270.78 points or 0.85% to settle at 31,524.68, its lowest closing level since 14 August 2017. A full day steep market slide was triggered by a sharp slump in index heavyweight and IT major Infosys. 

As Sikka resigned as chief executive and managing director of Infosys with immediate effect and the country’s no.2 IT services company named U.B. Pravin Rao as his interim replacement. shares fell as much 9.4 percent to their lowest since June 28, on way to their steepest intraday percentage loss since April 2013.

Technical outlook

Trading Pattern analysis nifty shows a Hammer pattern which means opening price is at the highs of the day and majority of the day index was trading lower and finally managed to recover and close the day well above the lows of the day. This pattern will have small body and long tail which suggest index is taking support at lower levels and buyers are creating long positions near the support. 

The last-minute buying in the market is a positive sign which suggests that the market could be bottoming out and investors can use buy on dips approach this week. It has to cross and hold above 9,880 to witness an up move towards 9,940-9980 levels. Traders should not make decisions based on one technical pattern and wait for further confirmation as the trend is indecisive.

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