Palak Kothari of Choice Broking said that the index has given a breakdown of the rising trend line and is sustaining below it.
“Nifty50 is trading below the middle band of Bollinger. On an hourly chart, the index has been trading below 21 and 50-HMA with a negative crossover, suggesting weakness for the next session. Moreover, the daily momentum indicators, stochastic and MACD, are also trading with a negative crossover, which added to the weakness,” the analyst said.
Osho Krishan of Angel One said selective blue-chip stocks shrugged off key technical support during the day.
“For Nifty50, the 17,000 is the crucial support followed by the swing low of 16,836, any breach of which can trigger a major concern for investors. On the higher end, the 50 per cent Fibonacci, placed around 17,380, is expected to act as the immediate resistance,” Krishan said.
Independent analyst Manish Shah said that the daily range of around 300 points for the Nifty50 has been a norm in the last three weeks, and the volatility continues to be high.
“Nifty50 is not approaching the support zone between 17,050 and 16,910. The size of the swings is declining. The moving averages are flattening and ADX is showing a value of 21. These are all signs of a directionless market,” he said.
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