Gaurav Ratnaparkhi of Sharekhan said the bulls stumbled near the junction of a falling trendline and the 40-day EMA. The hourly momentum indicator, having negative divergence, did not support the bulls.
“The level of 17,300 acted as a key barrier and will continue to maintain pressure on the higher side going ahead. On the downside, the index is expected to fill up a recent gap area of 17,161-17,112 and tumble towards the hourly lower Bollinger Band, which is near 17,000,” he said.
For the day, the index closed at 17,213.60, down 19.65 points or 0.11 per cent. Mild selling pressure from the intraday high of 17,286 as the index tested the upper boundary of a 31-day old descending channel.
Mazhar Mohammad of Chartviewindia.in said a close above 17,286 would initially expand the gains towards 17,340, where the 50-day exponential moving average is present.
“It remains very critical for the Nifty50 to sustain above the bullish gap zone of 17,161 –17,112 levels, registered on December 28 to retain positive bias as a close below 17,100 should ideally drag down the index into a sideways phase,” he said.
Independent Analyst Manish Shah said the market is turning out to be a buy on declines.
“Any drop to 17,000-17,050 is a buying opportunity. A break above 17,400-17,450 on the weekly time frame will be the first sign of Nifty50 resuming its impulsive move,” he said.
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