Nifty continued its downward journey for the fifth consecutive day as it plunged 306 points or 2 percent on Monday to close at 14,676, its lowest close since February 2.

This was the highest single-day fall in the Nifty after December 21, 2020.

Last week, Nifty violated the crucial support of the upward sloping trendline, adjoining the highs of January 13 and January 21, 2021.

Nifty closed below its 20-day EMA supports and now the short-term trend has turned negative.

On the weekly charts, Nifty has formed a bearish engulfing pattern, which is a bearish trend reversal indication.

Indicators and oscillators like RSI and MACD have shown negative crossover coupled with negative divergence on the daily charts, which increases the chances of extension of the fall in Nifty.

On the derivatives front, we have seen Call writing at 14,800-15,000 levels.

On February 2, Nifty formed a gap between 14,336-14,470 which is yet to be filled and it may act as an immediate support zone for the Nifty.