Mazhar Mohammad of Chartviewindia.in said the indecisive formations at the upper boundary of a downsloping channel are an indication that Nifty50 is preparing itself for a decisive move in either of the directions.
“While a breakout above 17,300 levels on a closing basis can be a sign of strength with initial targets placed around 17,550 levels, a close below 17,100 can act as a confirmation of near-term weakness which may eventually drag it down below 17,000 levels. For the time being, traders are advised to remain neutral and wait for a directional move in either of the directions before initiating a trade,” Mohammad said.
Independent Analyst Manish Shah said Nifty50 is trading above the 20-day moving average and other indicators such as MACD are in a ‘buy’ mode. The chance of a nice trend move on the upside is a high probability of occurrence, he said.
For the day, the index closed at 17,203.95, down 9.65 points or 0.06 per cent.
Gaurav Ratnaparkhi of Sharekhan said the level of 17,300 is keeping the rise in check and can continue to pose a key hurdle. “Unless the level of 17,300 gets taken out on a closing basis, the Nifty is expected to take a dip in order to fill up a recent gap area of 17,161-17,112 with a potential to test 17,000 on the downside.”
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