The index hit a low of 17,584.35 points and a high of 17,684.45 points during the day and settled at 17,624.45 points.
On daily technical charts, the index has formed a small bodied Bearish candle with longer shadows on either side and negated its lower highs formation of the last two sessions.
The index needs to hold above 17,620 points to witness an upmove towards 17,717-17,777 levels, while on the downside, supports are placed at 17,550 and 17,442 points, respectively, said Chandan Taparia, derivative analyst, Motilal Oswal Securities.
The fatigueness in the market after the recent rally was visible in the movement of volatility gauge India VIX, which ended down 1.7% at 11.94 levels.
The volatility has sunk and overall dried up and consistently hovering at lower zones, Taparia said.
How should traders move their coin in this market? Here’s analysts’ take:Shrikant Chouhan, head of research (Retail), Kotak Securities
Technically, the market is witnessing a non-directional activity near the 200-day SMA (Simple Moving Average) and is also holding a lower top formation on intraday charts.
Any fresh uptrend is possible only after the dismissal of 17700 level on Nifty 50 and above
the same, the index could move up till 17800-17825. On the flip side, below 17700 the weak sentiment is likely to continue till 17550-17500 levels.
Jatin Gedia, technical research analyst, Sharekhan by BNP Paribas
On the daily charts, we can observe that since the past 4 trading sessions, Nifty 50 has been consolidating in the broad range 17500-17800. Nifty is trading around the 200-Day moving average (17596) which is absorbing the selling pressure and also restricting a further drift.
The daily momentum indicator has triggered a fresh negative crossover, however, we believe that it is on the back of sideways price action since the last 4 trading sessions.
Until the Nifty 50 breaks below the crucial support zone of 17550-17500, we shall assign less weightage to this sell signal.
During this phase of consolidation, we can expect sector rotation and stock specific price
action. The range of consolidation is likely to be 17500-17800 for the next few trading sessions.
Rupak De, senior technical analyst, LKP Securities
Nifty50 remained sideways during the day as the headline index failed to witness any kind of directional move. For the last two sessions, Nifty has been witnessing time correction rather than price correction.
On the lower end, 17,580 is placed as a crucial support; any decisive fall below 17,580 may take the index towards 17,500/17,400.
On the higher end, 17,700 continues to remain a strong resistance, a decisive move above 17,700 may reinstate the bullishness in the market.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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