Nagaraj Shetti, Technical Research Analyst at HDFC Securities said Thursday’s movement indicates a lack of strength to sustain the highs.
“But, it also signals a halt in a sharp follow-through weakness after a sharp downside breakout of the 16,800 level in the previous session. If Nifty50 manages to sustain above 16,600 level and shows upside bounce from here, then one may expect chances of upside bounce in the market,” Shetti said.
Defending last Thursday’s low of 16,623 is slightly positive for the bulls, said Mazhar Mohammad, Chartviewindia.in.
“If the index manages to hold this level for the next couple of sessions, it can pave the way for sideways consolidation in the 16,623-17,132 range. In the case it breaches below 16,623, it should slide down into 16,447-418 levels. For the time being, traders are advised to remain neutral on the index, but shorting can be considered a breach of 16,623,” Mohammad said.
For the day, the index closed at 16,682.65, up 5.05 points or 0.03 per cent.
Shrikant Chouhan of Kotak Securities said charts suggest further correction from the current levels.
“As long as the index is trading below 16,850, the correction wave is likely to continue and below the same, Nifty50 could touch the level of 16,600-16,500. On the flip side, 16,800 and 16,850 would act as immediate hurdles. Above 16,850, the market could hit the level of 16,950,” Chouhan said.
