New Delhi: Nifty50 on Friday settled higher but formed a small bearish candle on the daily chart. On the weekly chart, the index formed a bearish candle with a long lower wick. Analysts said that the index may face resistance near 17,725-225 level while they saw 17,400 to act as a strong support going ahead.
Friday’s small bearish candle was placed within a long bear candle of the previous session. Technically, this action indicates range movement in the market with high volatility, said Nagaraj Shetti, Technical Research Analyst at
Securities.
“The index is trading near the 17,725 resistance level, an important retracement level. It has also formed a lower top formation on intraday chart, which supports further correction from the current levels,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.
“For the bulls, 17,725 would be the immediate resistance level. On the flipside, 17,500 would be the crucial support zone. Below the same, the index could retest the level of 17,350 and down the index could retreat to 17,200 level,” he added.
The index seems to have lost its upward momentum with a near-term top present around 17,992 level, said Mazhar Mohammad of Chartviewindia.in, who expects the index to remain directionless, confining to 17,726-17,482 range.
For the day, the index closed at 17,558.90, up 36.45 points or 0.21 per cent.
“While some strength can be expected on a close above 17,720, weakness should be confirmed on a close below its 20-day SMA (17,418), which the bulls have managed to defend in the current fall from the highs of 17,992. In that scenario, a bigger correction with initial targets of 16,950 looks inevitable. Traders are advised to remain neutral on the long side but intraday traders can consider shorting below 17,480 for a modest target of 17,410 level,” Mohammad said.
Nifty Bank
Kunal Shah, Senior Technical Analyst at
said that Nifty Bank continued to face stiff selling pressure around 39,500 level. The index is stuck in a broad range between 38,500-39,500 levels and a break on either side will give trending moves, he said.
“Traders should trade with strict risk management as September has been the series where the index has seen more than five per cent move,” Shah said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
