Analysts said the recent price action suggests the index is preparing for a downward trend. 17,700 and 17,500 will be key supports for the index incoming days, whereas any upside will be dependent upon a decisive break of the 18,000 level, analysts said.
The index made multiple attempts to touch 18,000 mark, but the bears defended the key psychological mark yet again, said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan.
“As long as the index trades below this level, it is likely to stay in the short-term consolidation. As per the internal structure of the recent price action, within the short-term consolidation, the index is preparing for a downward move. Thus, it looks poised to test its hourly lower Bollinger Band, which is near 17,700
with the potential to slide to 17,500 subsequently,” he said.
For the day, the index closed at 17,936.35, up 103 points or 0.58 per cent.
Nifty50 made an attempt to move into new swing highs, but was not able to close at the highs, said Nagaraj Shetti of Securities.
“The crucial overhead resistance of 17,800 (significant down sloping trend line, connected from the top of October 2021) has been surpassed amidst a range movement, but the strength required for a decisive upside breakout of the key overhead resistance is absent so far,” he said adding that similar action was noticed from August 17 to August 19 above the trend line hurdle, but the market eventually saw a short-term downward correction.
A similar pattern seems to be unfolding at the highs, he said.
Nifty Bank
For the day, the bank index closed at 40,574, up 158.30 points or 0.39 per cent. The index formed a Doji candle on the daily chart, indicating indecisiveness at the current levels.
“The undertone remains bullish, and one should keep a buy-on-dip approach with strong support at the 40,000-39,800 zone. The immediate hurdle on the upside is placed at 40,700 and once taken out will witness a swift move towards 41,500-41,800 levels,” Kunal Shah, Senior Technical Analyst at
.
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