Analysts said the index has been finding it difficult to breach its key short-term moving averages and sees the index trading in a 16,800-17,400 range in coming days.
For the day, the index closed at 17,276.30, down 28.30 points or 0.16 per cent.
“The 16,800 level looks like a double bottom formation provided this level holds going forward, which can be slightly advantageous to the bulls. Going forward, strength in the index shall not be expected unless it closes above 17,400 levels. On such a close, the current pullback swing can expand towards 17640 levels,” said Mazhar Mohammad, Chief Strategist – Technical Research, Chartviewindia.in.
Amol Athawale of Kotak Securities said the indices took the support of near 200-day SMA (simple moving average) and reversed sharply during the week.
“On daily and weekly charts, the market is holding lower top formation and is consistently facing resistance around 20 and 50 day-SMAs. Direction-wise, fresh range breakout is possible only after 17,500. On the downside, it could hit 17,200 where the possibility of quick correction can’t be ruled out,” Athawale said.
A bullish candle with a long upper shadow on the daily chart and a small-bodied bullish candle on the weekly time frame indicate a tug of war between the bulls and the bears, said Chandan Taparia of Motilal Oswal Securities.
“The index got stuck in a 17,200-17,500 range for the last three sessions, and a decisive range breakout is required to commence the next leg of the rally. Till it remains below 17,350, weakness may be seen towards 17,100 and 17,000 while hurdles can be seen at 17,400 and 17,500 zones,” Taparia said.
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