Outlook for Nifty to remain bearish below 17,490, says Subash Gangadharan

The technical & derivative analyst from HDFC Securities recommends buying SAIL and and Hindalco

Over the last few weeks, the Nifty has been in correction mode. The downtrend was confirmed when the support of 17,613 was broken.

On the daily chart, we see that Nifty remains in a downtrend despite the bounces seen recently. The index continues to make lower tops and lower bottoms for the last few weeks. The 20-day SMA also continues to trade below 50-day SMA, indicating a negative moving average crossover. Weekly momentum readings like the 14-week RSI are in decline mode.

While we remain open to pullback rallies, we expect the Nifty to eventually move lower in