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Tech View: Nifty50 stays in narrow range; 18,350 an immediate hurdle, say analysts

NEW DELHI: The Nifty50 on Monday formed a small real body on the daily chart, similar to the one seen last week, reflecting the narrow range for the market of late. The broader market breadth, however, stayed in favour of the bulls. Analysts said revisiting the recent peak is possible if the index holds on to the 18,200-225 level on a closing basis.

Sameet Chavan of Angel One said the index is approaching record highs when the mega event Budget is around the corner. “That has applied brakes on the momentum. As far as levels are concerned, the levels of 18,350-18,400 are to be considered as immediate resistances whereas the 18,200-18,150 range is to be treated as key support now,” he said.

For the day, the index closed at 18,308.10, up 52.35 points or 0.29 per cent.

If Nifty50 sustains above the 18,220 level, it can head higher and test life highs present around 18,600 said, Mazhar Mohammad of Chartviewindia.in.

“If the index slips below 18,220, it can witness some selling pressure on an intraday basis with a target of 18,100 level for the time being long side bets can be continued with a stop below 18,220 with a target present in the 18,550-18,600 zone,” Mohammad said.

Shrikant Chouhan of Kotak Securities said the index formed a small bullish candle, and on intraday charts, it is holding higher bottom series formation, which is largely positive.

“For the trend following traders, 18,225 would be the key level to watch out for and the same uptrend formation may continue up to 18,375-18,400 levels.

However, a quick intraday correction is not ruled out if the index trades below 18225 and below the same, it could hit 18,150-18,100,” Chouhan said.

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