Rupak De, Senior Technical Analyst at
said the engulfing pattern after two days of positive move has set the stage for a bearish reversal.
The momentum indicator RSI is also pointing toward a negative momentum in the near term, he said. “On the lower end, 17,480 is likely to act as initial support and a fall below 17,480 may take the index towards 17,350,” he said.
For the day, the index closed at 17,522.45, down 82.50 points or 0.47 per cent.
“Today’s price behaviour is looking like one akin to the resumption of a downtrend from the intraday highs of 17,726 level. Hence, in the next trading session, if the Nifty50 slips below 17,499, weakness may extend towards 17,345 that would also result in the breach of the 20-day SMA (around 17,480),” said Mazhar Mohammad of Chartviewindia.in.
Mohammad advised long-side traders to adopt a neutral stance and said intraday shorting can be considered below 17,490 for a modest target of 17,390 level.
Nagaraj Shetti, Technical Research Analyst at Securities said Thursday’s sharp intraday weakness could be a worrying factor for the bulls. As long as Nifty50 sustains above the support of the 17,300-17,200 level, there is a possibility of an upside bounce from the lower levels, he said.
“One may expect broader range movement for the Nifty50 around 17,700-17,800 on the upside and 17,300-17,200 levels on the downside for the near term,” he said.
Nifty Bank
Nifty Bank closed the day at 38,950.75, down 87.75 points or 0.22 per cent. It formed a Bearish candle on the daily scale but is still forming higher highs for the last three sessions, said Chandan
of Securities.
“Now, the index has to hold above 38,888 for an upmove towards 39,250 and 39,500 levels. Support at 38,750 and 38,500 levels,” Taparia said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
