nifty: Tech View: Nifty charts hint at more trouble ahead. What investors should do on Wednesday

“The correction wave is likely to continue till 16,850-16,800. On the flip side, 17,050 would be the key intraday resistance zone, above which a minor pullback rally is possible till 17,100-17,125,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Indicators and oscillators have turned bearish on the short-term charts.

Option data suggests a shift in lower broader trading range in between 16,600 to 17,500 zones while an immediate trading range in between 16800 to 17,200 zones.

What should traders do? Here’s what analysts said:

Rupak De, Senior Technical Analyst at

The trend looks weak, a fall below 16980 may trigger a selling pressure in the market with a potential to fall towards 16800. On the higher end resistance is visible at 17,100.

Ajit Mishra, VP – Research, Broking

As we’re not seeing any respite on the global front, any disappointment on earnings or the macroeconomic front may put further pressure. On the index front, we are now eyeing 16,800 in Nifty and its decisive break would reverse the recovery trend. Traders should align their positions accordingly.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

Nifty is expected to attract buying support again near the support zone of 16,800-16,750. On the higher side, the zone of 17,250-17,300 kept the bounce in check for the last couple of sessions & can continue with its role of resistance in the short term.

Nagaraj Shetti, Technical Research Analyst, Securities

After a range bound action in the last few sessions, the market is now showing signs of revisiting its crucial support of around 16,800 levels in the short term.

After the formation of lower top at 17,428 on 6th October, Nifty is expected to slide down to the recent lows in the coming sessions.

The short term trend of Nifty remains weak and the downside momentum has started to pick up from the lower highs. One may expect the Nifty to slide down to the important support zone of around 16,800-16,700 levels in the next few sessions, before showing another round of upside bounce from the lows. Immediate resistance is placed at 17,130-17,150 levels.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)