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Tech View: Nifty50 bulls not ready to give in; momentum positive

Tech View: Nifty50 bulls not ready to give in; momentum positive #Tech #View #Nifty50 #bulls #ready #give #momentum #positive Welcome to Viasildes, here is the new story we have for you today:

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Nifty50 on Wednesday settled below the 15,800 mark, even as it formed a small bullish candle on the daily chart. Analysts noted that the index has been staging a recovery in the last couple of sessions after seeing gap-down starts, which is positive. Besides, they noted that the selling pressure is getting absorbed near a key moving average. Analysts said the momentum stays positive.

“In terms of the levels, 15,700 is acting as key support. As long as the Nifty50 stays above 15,700 on a closing basis, it is expected to witness sideways to positive action in coming sessions. The hourly chart shows that the index moved in an upward-sloping channel since last week. This indicates that the short-term trajectory is positive, and the index can test 16,000 in the short term,” said Gaurav Ratnaparkhi of Sharekhan.

For the day, the index closed at 15,799.10, down 51.10 points or 0.32 per cent.

“After the false upside breakout of 15,800-15,900 levels on Monday, Nifty50 has declined gradually in the last two sessions, which could be a positive indication for the bulls to make a comeback from the lows. Normally, such range movements from near important resistances eventually result in sharp upside bounces,” said Nagaraj Shetti, Technical Research Analyst, Securities.

Shetti said the present range-bound movement could continue for the 1-2 sessions, and immediate support to be watched around 15,600-15,650 levels. “On the flip side, a decisive move above 15,850-15,900 levels is likely to open a sustainable upside for the market,” he said.

From a technical perspective, Milan Vaishnav of Gemstone Equity Research said the Nifty50 is trying hard to penetrate the resistance zone of 15,670-15,700 and keep its head above this zone.

This is the support zone that the Nifty50 violated on its way down and is now facing stiff resistance in this area, Vaishnav said.

On the derivatives side, “as we enter the expiry day of the current month F&O series, the coming session is bound to stay dominated with rollovers. The 15,700 levels have seen the highest put writing activity; maximum call OI accumulation stands at 16,000. Since the Nifty50 has a gap between 15,900-16,200, Nifty50 has shown possibilities of inching higher and testing at least 15,900 and higher levels,” he said.

Nifty Bank
Chandan

of Securities said buying was seen at declines and that the Nifty Bank outperformed the broader market to close with gains of around 490 points.

It formed a Bullish candle on daily and weekly frames, he said, adding that the index has to hold above 33,500 for an up move towards 34,000 and 34,250 zones,” Taparia said. The analyst said supports for the index are placed at 33,333 and 33,000 zones.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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