Analysts said that the index is near key resistance levels, and the 17,700-800 range may prove to be a strong hurdle for the index in the near future.
“If we draw a trendline connecting the October 2021 high and subsequent highs, the Nifty50 is now steadily approaching the resistance zone of 17,900-18,000. This is a make or a break range for the Nifty50. If the index fails to move beyond 18,000, we could see a serious decline coming in,” said independent analyst Manish Shah.
“We expect Nifty50 to generally remain bullish till 17,900-18,000, and one needs to exercise caution as it is nearing a major barrier,” he added.
For the day, the index closed at 17,659, up 124.25 points or 0.71 per cent.
“Nifty continued to remain in a consolidation mode, suggesting a continuation of the up trend in the market. On the higher end, however, Nifty50 had faced a bit of selling pressure that led to a close around the day’s low. The current rally may extend towards 17,750-17,800, where crucial trendline resistance is placed. On the lower end, support is at 17,450-17,500,” said Rupak De, Senior Technical Analyst at
.
Shrikant Chouhan of Kotak Securities said the index is trading near its important resistance level and that for traders, 17,600 would be the key support to watch out for.
“While the overall chart structure suggests that if the market sustains above the same, breakout continuation formation could continue till 17,700-17,750. On the flip side, a sharp intraday correction is possible if the index trades below 17,600. Below this, the index could slip till 17,540-17,450,” Chouhan said.
Nifty Bank
Analysts said that the Nifty Bank surpassed the immediate hurdle of 38,400, which will now act as support on the downside. They see the upside resistance at 39,000. If this level is breached on a closing basis, they see further upside towards the 40,000 level. That said, the index trading in overbought territory and a profit booking scenario cannot be ruled out from the current levels, they warned.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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