Nifty: Tech view: 16,550 levels crucial for Nifty; wait for clarity before making a move, say analysts
Analysts pointed out that there seem to be multiple hurdles in the zone of 16,800-17,065 that not only includes the bearish gap zone but also the 200-day EMA whose value is placed around 16,720 levels.
Rupak De, Senior Technical Analyst at LKP Securities, said going forward, the recovery may continue as long as 16,550 is held decisively.
The index saw a gap up opening at 16,515.65, with the day’s high at 16,748.80. Today’s low was at 16,478.30 with the index closing at 16,658.40, up 2.53 per cent or 410.45 points compared to the previous close.
For Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, for the next couple of sessions, Nifty needs to sustain above 16,478 levels to develop sideways to positive bias.
“In that scenario initially it can head into the zone of 16,800-850. Contrary to this, if Nifty fails to sustain above 16,478 levels then eventually it may slip towards 16,200. For time being, it looks prudent to wait for more signs of stability on the index before initiating a trade,” he said.
India VIX, which spiked to 52 week high levels on Thursday, eased over 16 per cent to 26.74.
Anu Jain, Head – Broking, IIFL Wealth, said, in the short-term she expects index prices to remain volatile with Thursday’s low (16,203) as an important level to watch.
“Prices have given a negative confirmation with a break below the multiple support zone of 16,800-16,900 coinciding with the 200-day moving average which on the upside could act as immediate resistance,” she added.
