The index has negated its formation of higher high-low after four sessions, said Chandan Taparia of Motilal Oswal Securities, who believes the index has to hold above 17,777 for an up move towards 18,000. Taparia sees support for the index at 17,600.
For the day, the index closed at 17,745.90, down 179.35 points or 1 per cent.
It looks critical for the index to sustain above Thursday’s intraday low of 17,655 to retain bullish bias, said Mazhar Mohammad of Chartviewindia.in.
“In that scenario, a sideways consolidation can be expected. A breach of 17,655 may drag the index towards its 50-day moving average, whose value is placed around 17,400 levels. Our twin momentum oscillators generated a sell signpost on today’s sell-off. We expect the market to remain sideways with negative bias for the next couple of trading sessions,” Mohammad said.
In a fast uptrend, the corrective declines coils last for two to three days, said independent analyst Manish Shah, who said the Nifty could see a sideways action in the 17,650-18,003 range, but probabilities favour a rally to 18,250-18,300 over the next 5-10 days, he said.
“MACD is in a buy mode and RSI holds above 60. Traders should consider retaining long positions and keep a view with a bullish bias,” he said.
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