LKP Securities Dixon Tech Nifty50 has fallen more than 2.5% during the week on the back of a sell-off, mainly due to a negative report by Hindenburg on Adani Group.
Support is visible at 17,400, below which further sharp correction appears possible.
Therefore, the market may remain in a sell-on-rally till the time Nifty stays below 17,850.The Hindenburg vs. Adani news led to a crash in the Adani Group stock price.
Besides, the index showed a consolidation breakdown, resulting in a sharp correction.
The stock fell sharply on Friday, down about 20% from its previous closing.
Immediate support is seen around 2,600, which is a 61.80% Fibonacci retracement of the previous rally on the monthly chart; expect a smart recovery if the stock holds above 2,600.On the other hand, failure to sustain above 2,600 may trigger a correction towards 2,070.

Source - Economic Times