Nifty's set-up remains weak, expect further correction: HDFC Securities

A larger correction is likely once the 16,782 supports are broken

Over the last few weeks, the Nifty has been in a 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 in the last two sessions. The index continues to make lower tops and lower bottoms over the last few weeks. The 20-day SMA also continues to trade below the 50-day SMA, indicating a negative moving average crossover. Weekly momentum readings like the 14-week RSI are also in a decline mode.

While we remain open to pullback rallies, we expect the