The next support levels for Nifty 50 index after breaking February 28 low

From the February 28 low of 17,255, the Nifty 50 had a bout of short covering, post which it made an intraday high of 17,799 on March 8. The index has been in a downtrend since then.

Analysts were highlighting 17,255, the low of February 28 to be a crucial support level for the index. It has now convincingly broken below it, ending 100 points lower than that level at 17,154.

“From my perspective, as the quantitative tightening is happening, whatever panic that we are seeing, markets are getting recalibrated and PEs are coming down. So we may not see great fall from the current levels but a lot of time spending on sideways is a possibility,’ Dilip Bhat, Market Expert was quoted as saying.

Rohan Patil of SAMCO Securities had mentioned earlier that in case the Nifty closes below the 17,200 mark, the next support level will now be seen at 17,000.

Rs 4 lakh crore worth of investor wealth was wiped out during Monday’s trading session.

Chandan Taparia of Motilal Oswal told CNBC-TV18 that with the Nifty 50 breaking below its February 28 low of 17,255, the downside towards levels of 16,800 has opened up. “In case the market bounces tomorrow, it will be a sell-on-rise sort of setup,” he said. On the upside, he sees resistance for the Nifty 50 at levels of 17,350.

The Nifty 50 index closed at the lowest level since October last year. Deepak Jasani of HDFC Securities expects 17,087 to be a crucial level for the Nifty 50, below which, the index can fall towards levels of 16,747. He expects resistance on the upside at levels of 17,325