Wednesday’s was the second time when the index stumbled near these moving averages in February, said Gaurav Ratnaparkhi of Sharekhan, who believes one needs to be cautiously bullish at this level.
“The 17,500 is a key hurdle to watch out for. If the index takes out that hurdle, it can head towards 17,800 in the short term. On the other hand, the key hourly moving averages are acting as a cushion on the downside. They are offering support on the downside near 17,200-17,300.
A bearish candle on the daily scale and lack of follow-up buying at higher zones have sent mixed signals, said Chandan Taparia of Motilal Oswal Securities. Taparia said the index has to hold above 17,300, for an upmove towards 17,500 and 17,777 levels. He sees support at 17,200 and 17,000 levels.
For the day, the index closed at 17,322.20, down 30.25 points or 0.17 per cent.
The selling was witnessed after the index tested the 20-day SMA. If Nifty50 slips below 17,250, it can attract more selling pressure on an intraday basis. Strength can be expected on a strong close above the 20-day average, whose value is placed around 17,420 level. Intraday traders can look to short below 17,250 levels whereas long positions should not be considered unless the index closes above the 20-day average,” said Mazhar Mohammad of Chartviewindia.in.
Osho Krishan of Angel One said the index is likely to remain range-bound going ahead. He sees the 17,500 level as a sturdy wall.
“On the flip side, 17,100 is expected to provide vital support to the index. Until the mentioned level is not breached, a range-bound movement is expected. Looking at the technical structure and the sentiment among participants, indecisiveness may continue going ahead,” Krishan said.
