To regain strength, the index needs to get past the 16,275 level, according to Mazhar Mohammad of Chartviewindia.in.
“In that scenario, the pullback swing can further expand towards its 200-day EMA, whose value is around 16,545. Nevertheless, if we read the candles of the last three trading sessions in isolation, it is hinting at the short-term weakness that can be confirmed if the index slips below 16,115 level with initial targets close to 16,000 level,” he said.
The index closed at 16,216, down 4.60 points or 0.03 per cent.
Nagaraj Shetti, Technical Research Analyst,
Securities, said that Monday’s candle signals a consolidation in the market after a recent sharp upmove. This is a positive indication and signals a lack of selling participation in the market at the hurdle of 16,200-16,300 levels, Shetti said.
Shetti said that Nifty50 remains intact, and the market is taking a temporary halt before showing further upmove in the near term.
“The current range movement within 16,100-16,250 level is likely to extend for the next session. A sustainable move above 16,300 could be viewed as strengthening of upside momentum,” Shetti said.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan, said that the index had last week reached a crucial junction formed by its daily upper Bollinger Band, upper end of a falling channel on the daily chart as well as upper end of a rising channel on the hourly chart.
“In terms of the Fibonacci retracement, it did little more than 61.8 per cent of the June fall. The index continued to trade near these key parameters. The hourly Bollinger Bands have started contraction. Thus, the Nifty50 is expected to witness a brief consolidation near 16,000-16,275. As long as the Nifty50 stays above the 16,000 mark, the short-term bounce can extend towards 16,500. A breach of 16,000 will turn the table in favour of the bears,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
