“After seeing a gap up of 213 points, the index traded in a narrow range for the better part of the session but the opening upside gap remained unfilled. A reasonable long bull candle was formed on the daily chart. Technically, this market action suggests a chance of decisive upside breakout of 17,000 levels in the coming session,” said Nagaraj Shetti of HDFC Securities.
The index area of 16,800-17,000 level has in the past proved significant as a few significant bounces and a decisive downside breakout were seen over this range in the recent past, Shetti said, who believe Nifty50 could reach up to 17,500 in the range is broken.
For the day, the index closed at 16,975.35, up 312.35 points or 1.87 per cent.
The index still trades below the 200-day moving average and that the intraday range on Wednesday remained rarrow at about 150 points, said Mazhar Mohammad, Chief Strategist – Technical Research, Chartviewindia.in.
“Strength in Nifty50 shall not be expected unless it closes above 17,000. If it slips below 16,837, on the intraday basis, it can attract some selling. The last three sessions of price behaviour, since Monday, is hinting that 16,600 can assume the role of critical support in the near term. Dips remain a buy opportunity unless Nifty50 closes below 16,600 levels,” he said.
As long as the Nifty50 remains below 200-DMA, one may expect choppiness in the market, said Rupak De, Senior Technical Analyst at LKP Securities.
“On the lower end, support is seen at 16,600 whereas on the higher end, 17,000 is likely to act as resistance on a closing basis,” De said.
