Tech View: Nifty50 bulls fight back, signal trend reversal

The formation could be considered as a constructive setup, said Osho Krishan of Angel One. Krishan, however, believes that the lack of leadership from the key sectors (IT and bank) is a matter of concern.

“As far as levels are concerned, the 17,000 mark is the crucial support, followed by the previous swing low of 16,836. On the upside, the 50 per cent Fibonacci is expected to act as the immediate resistance zone placed around 17,380 levels, followed by 17,500 in the near future,” Krishan said.

Manish Shah said that the reversal signal has come after four days of decline. “A strong reversal from the lows means that the buyers are in control and ahead of the policy review Nifty50 could see a strong comeback. For the bulls to assert authority, Nifty50 needs a push above the resistance of 17,330-17,350 which will take it towards 17,500-17,600,” Shah said.

Shah sees support for the index at 17,050.

Shrikant Chouhan of Kotak Securities said the index is trading in the 17,100-17,400 range, while 17,150 is a key support level. “Above the same, the index could move up to 17,350-17,400. Below 17,150, the chances of the index hitting 17100-17075 remains high,” Chouhan said.