Trade setup for May 16: Can the bulls aid a pullback in the Nifty50 soon?

Trade setup for Monday, May 16: With the Nifty50 not far from its recent low, more pain cannot be ruled out for the bulls, warn experts. Here's what the technical charts suggest.

Indian equity benchmarks extended losses to the sixth session in a row on Friday, dragged by financial and metal stocks though FMCG, oil & gas and auto shares limited the downside.

The Nifty50 is almost 1,500 points below its long-term simple moving average thanks to the sustained sell-off.

The Nifty50 has formed a long body negative candle on the daily chart with a long upper shadow, reflecting a lack of strength in the market to sustain the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. He sees a 'sell on rise' opportunity in the market.

All eyes on the recent low

A slide below the recent low of 15,671 will create a panic situation in the market, Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One, told CNBCTV18.com. Below that level, 15,350-15,200 will be the next levels to watch out for and on the flipside, a stiff hurdle is expected in the 16,000-16,200 band, he said.

He sees the first sign of relief beyond these levels, and suggests avoiding aggressive trades at the current juncture.