Nifty50 has managed to defend the critical support of 16,800 level for the third time since January 25, said Mazhar Mohammad of Chartviewindia.in.
“Sustaining above 16,800 level on a closing basis, a pullback move can be expected towards 17,350 level. Moreover, at Tuesday’s low of 16,843 levels, the index has tested the lower Bollinger Band on daily charts and bounced back smartly. In case 16,800 is decisively breached, the initial targets can be the test of 200-day EMA 16,720, but a fall to major corrective swing low of 16,410 cannot be ruled out,” Mohammad said.
For the day, the index closed at 17,092.20, down 114.45 points or 0.67 per cent.
“It is forming lower high-lower lows for the last four sessions but formed a Bullish candle and recovered from its previous support of 16,850. It has held above 17,000 for an up move towards 17,200 and 17,350 levels. Support for the day can be seen at 17,000 and 16,850 levels,” said Chandan Taparia of Motilal Oswal Securities.
Independent analyst Manish Shah said the index is in a long-term coil, more popularly known as a symmetrical triangle.
“The Nifty50 is in a short term trading range of 17,500-17,000 and seems lost for direction. The volatility is also shrinking for some time, and whichever way the market swings, it could be a price move to capitalise on. We expect the index to maintain the status quo in the 17,500-17,000 range for the time being,” Shah said.
Mohammad said positional traders with a high-risk appetite could go long with a stop below the 16,800 level and should look for a target of 17,350.
