Tech View: Nifty50 bulls take out 17,200, eye 17,450 hurdle ahead

Analysts see tough resistance ahead. They feel that failure to take out 17,400-450 levels could bring selling pressure to the index. Support seen at 17,050 level, they said.

“With the bounce, the index has filled up the recent gap area of 17,054 – 17,149. It halted near a falling trendline on the hourly chart, which is around 17,200. Additionally, the key daily moving averages are standing as barriers near the 17,200-17,400 zone.

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The overall structure suggests that the index is trading near its short term hurdles and can slip again in the coming sessions. It can test the swing low of 16,824. This bearish stance holds true as long as the index trades below the swing high of 17,415,” said Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan.

The last couple of trading sessions completely caught the traders off guard with frequent gap down (or up) openings, apart from the sudden intraday reversals in both directions, said Mazhar Mohammad of Chartviewindia.in.

But as the index has bridged the bearish gap zone, the strength could eventually expand towards 17400 level — if it sustains above 17,064 level, he said.

“For traders who want to initiate long positions, the ideal stop is below 17,064 level,” Mazhar added.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said 17,300-17,400 area is expected to be a tough task for the market to surpass. “Any lack of strength in further upside bounce at the highs could bring another round of selling pressure to retest lower support of 16,800 level,” he said.

Independent Analyst Manish Shah said that Nifty has made a bullish double bottom pattern on the lower time frame chart and has also broken out of a minor trend line.

“This is bullish behaviour and we can expect a rally to 1,7400-17,350 within the next three days. For traders playing the end of expiry trade, the index could be offering a bullish opportunity to trade on the long side. Support in Nifty50 is at 17,060. If Nifty breaks 17,450 expect further upsides to 17,800 over next several days,” Shah said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)