Nifty50 did not breach the 20-day moving average on the downside, which may act as initial support as it offered resistance for a couple of sessions on earlier pullback attempts, said Mazhar Mohammad of Chartviewindia.in.
“Unless Nifty50 closes below 17,836, the bears may not gain upper hand. The bulls need a close above 18,100 to gain strength. For the time being as the trend seems to be directionless, traders should remain neutral,” he said.
Gaurav Ratnaparkhi of Sharekhan said the index breached its key hourly moving averages initially but there was no follow-through selling.
“The index received buying support as it moved near the rising trendline on the hourly chart. But it stumbled near 61.8 per cent retracement of the previous fall. The daily chart shows that the Nifty50 is witnessing oscillations between the key daily moving averages. The range breakout on the upside will be considered once the index crosses the swing high of 18,112. On the other hand, 17,900-17,920 will act as a near term support zone,” he said.
For the day, the index closed at 18,017, down 27 points or 0.15 per cent.
Independent Analyst Manish Shah said if Nifty manages to push the market above 18,100 it would leave the field wide open for a rally to 18,300 and this could happen in the next weekly expiry.
“For the current week’s expiry, Nifty is not likely to trade below 17,850. A break above 18,100 will be a call to action for aggressive bulls,” Shah said.
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