Tech View: Nifty50 bulls roar but face key moving averages ahead

Mazhar Mohammad of Chartviewindia.in said the index has successfully bridged the bearish gap present in the zone of 17,099-303 levels and that the level of 16,800 seems to be emerging as short-term critical support.

“Sustaining above the said support level Nifty can be expected to test its 20-day SMA present at around 17,450. A close above the said average can be considered as an initial sign of strength. But the trend should not completely change in favor of the bulls unless Nifty50 registers a close above 17,800 level,” Mohammad said.

For the day, the index closed at 17,352.45, up 509.65 points or 3.03 per cent. The recovery was triggered near the 200-day moving average, which at Tuesday’s close stands at 16,811.

Shirkant Chouhan of Kotak Securities said Nifty50 saw a pullback rally but is still trading below the 50 day SMA. He said 17,450 and 17,550 would be the immediate hurdle for the index.

“As long as the index is trading above 17200, the uptrend texture will continue till 17,450-17,550 levels. On the flip side, a quick intraday correction is not ruled out if the index trades below 17,200,” said he.

Within the trading band of 17,800-16,800, Nifty is undergoing a very volatile phase, said Independent Analyst Manish Shah.

“Till the time this band breaks out in either direction, the volatile phase will continue. There is no telling when Nifty will break out of this trading range,” Shah said.