Support broken: Technical analysts see Nifty slipping below 16,000

The benchmark Nifty50 index on Thursday dropped below its crucial support zone on technical charts. This could result in further correction, say technical analysts.

The 200-day moving average— a key indicator used by traders for determining long-term market trends—for the Nifty was seen as a key support zone as the index had rebounded sharply from these levels (which fell around 16,800-16,900) on a few occasions in the past.

However, Thursday’s 815-point, or 4.8 per cent fall, saw the benchmark index surrender this level decisively. The Nifty closed at 16,248. “Fall has resulted in the breakdown of the consolidation range in the Nifty