Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan said the 16,000 mark is a significant hurdle from a short term perspective.
He added that the index is likely to remain above a declining trend line on the hourly chart, indicating an end to the short-term positive momentum. Immediate support for the index is near 15,750-15,800. He said the overall structure suggests that Nifty 50 is still in short term consolidation mode.
For the day, the index ended lower at 15,810.85, down 24.50 points or 0.15 per cent.
Mazhar Mohamed of chartviewindia.in said that the chart of the day depicts a shooting star-like candle with a long upper shadow. According to him, Tuesday’s sales have largely come from the supply sector present in the 15,900-16,172 range.
“If the index slips below 15,661, it could signal the end of a pullback rally from lows of 15,183. In that scenario, the initial target could be towards 15,511. Conversely, if the index seeks to defend 15,785. manages, the bulls may attempt to bridge the bearish gap with the level above 16,172,” he said, advising traders to avoid long side bets for now.
Shrikant Chauhan Kotak Securities Said that the 20-day simple moving average (SMA) or 15,750 will now be a key support level. Beneath the same, the index may slip towards 15,700-15,650 levels, he warned.
Independent analyst Manish Shah said Bank Nifty found sellers on a falling trendline between April highs and June highs. The pattern at play is a bearish dark cloud cover, he said.
“If Nifty Bank trades below 33,700 then a downside correction is expected towards 33,100. Overall, it may trade in the range of 33,400-33,100. For Nifty Bank to rally, it needs to move above 33,400-33,450. needed, which will also result in a rally of 35,900-36,000. The current expectation is that it will continue to oscillate between 33,100-34,000 for a longer period,” Shah said.
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