“Nifty witnessed a recovery during the day, as it found support around 80 per cent retracement of the previous rally from 16,400 to 18,350. The lower shadow on the daily chart indicated buying at the lower levels. Going forward, the resistance at 17,400 may challenge the bulls; however, a decisive move above that level may take the Nifty higher towards 17,800. On the lower end support is visible at 17,000 and 16,800 levels,” said Rupak De, Senior Technical Analyst at LKP Securities.
For the day, Nifty50 ended at 17,277.95, up 128.85 points or 0.75 per cent. This is even as it was the fifth straight session when the index formed a lower high-low formation.
This intraday recovery of around 450 points, appears to have halted the correction, for the time being, said Mazhar Mohammad of Chartviewindia.in.
“One can expect a sideways consolidation move in the 17,600-16,800 range. The trend for Thursday can be influenced by factors like F&O monthly expiry and the outcome of Federal Reserve meeting. Hence, it looks prudent to remain neutral for the day and if Nifty50 sustains above 16,832 on Thursday, long positions can be considered for a target of 17,600 level, whereas a close below 16,800 can pave the way for a test of 16,410 level,” Mohammad said.
Meanwhile, Nifty50 could not register a ‘Bullish Piercing candle, which was a bit of a disappointment, said Independent Analyst Manish Shah.
“Excessive volatility continues to be the norm in global markets also considering the sharpness of the bounce in the international markets. If we draw a trendline from the low of April 2020 and December 2020, Nifty50 reversed after hitting this rising trendline. The underlying sentiment has turned marginally bullish and we could see Nifty50 showing a rally to 17,550-17,600 over the next couple of days,” Jain said.
