Nifty50 outlook: Tech View: 15,750 level emerging as strong support for Nifty50; recovery on cards

Independent Analyst Manish Shah said the lows of the last three days are almost equal at 15,750 and the pattern in play is a tweezers bottom. It suggests Nifty50 is not ready to slip below the support at 15,750, Shah said.

“Nifty50 is deeply oversold and in the last three days, bears are unable to push Nifty50 below 15,750. On the lower time frame, we also see a positive divergence between Nifty50 and RSI, and other oscillators. With each passing day, the probability of markets getting ready for a bounce is getting better. Nifty needs to break above the high at 15,910 for a rally to 16,100 and above that to 16,250,” Shah said.

For the day, the index closed at 15,842.30, up 60.15 points or 0.38 per cent.

Sameet Chavan of

also talked about the lows around 15,750 and said the selling seems to have reduced a bit as we approached the key support zone.

“This does not mean we are out of the woods. For the time being, 15,700-16,100 has become a range for Nifty50. We do not expect a downside below 15,700-15,600 as markets are extremely oversold. Any breach of lower levels would probably give a false breakdown,” said Sameet Chavan of Angel Broking.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said the index may stay under pressure as long as it trades below 16,000.

“In that case, it can test the March low of 15,671. On the flip side, if the bulls manage to take out the 16,000 mark on a closing basis, Nifty can take a leap towards 16,200-16,250 levels,” Ratnaparkhi said.

On a 15-minute chart, said Subash Gangadharan of

Securities, the index has been making lower tops. “This is not a sign of strength and therefore caution is warranted. Also, the index remains in a downtrend. The 20 period MA on the 15 min chart remains below the 50-period MA, indicating that the negative moving average crossover is intact. Nifty is, however, near major support of 15,671, suggesting there is a possibility of a bounceback in the very near term,” he said.

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The Economic Times