On a weekly scale, the index formed an undecided candle. Analysts see support for the index in the 17,250-300 range.
“Nifty50 has given up almost all the gains from the last two trading sessions. In this process, it has also closed the bullish gap placed in the area of the 17 339-306 level. Therefore, going forward, it must hold above the 17,300 levels to maintain positive bias. A close below the 17,300 level can push the index down towards the 17,000 level,” said Mazhar Mohammad, Chief Strategist – Technical Research, Chartviewindia. in.
Mohammad said a close look at Nifty50 suggests the price action is taking place in a triangle formation that is coming to an end.
“Therefore, going forward, one can expect a quick move in either direction depending on the direction of the breakout. It seems prudent to avoid long side bets,” he said.
For the day, the index closed at 17,374.75, down 231.10 points or 1.31%.
Chandan Taparia of Motilal Oswal Securities said that a bearish candle on the daily scale with a long lower shadow and a bearish candle with a small body on the weekly scale indicate a tussle between bulls and bears. Taparia said it was important for Nifty50 to hold above 17,350 for a rally towards the 17,500 and 17,777 levels. He sees support for the index at the 17,250 and 17,100 levels.
“Once again, the index has slipped below the 50-EMA. The trend looks negative in the short term. On the low, support is visible at 17,250-17,265. above 17,640 to change the current downtrend,” said Rupak De, senior technical analyst at LKP Securities.