The index saw selling pressure from the word go and closed near the day’s low, thus, forming a Bearish Belt Hold pattern on the daily chart.
A close observation of the last nine sessions is suggesting that Nifty50 might be carving out a new consolidation zone inside the 14,900-14,300 range, said Mazhar Mohammad of Chartviewindia.in.
He said if the index trades below 14,670 level on Thursday, it would make an attempt to bridge the bullish gap present in the 14,617-14,572 zone, which was formed on March 30.
“Usually, such gaps act as support points on the downside and, hence, some buying should be expected if the index approaches the said zone,” he said.
For the day, the index closed at 14,690, down 154.40 points or 1.04 per cent.
ETMarkets.comAditya Agarwala of YES Securities said a sustained trade below the next immediate support at 14,620, being the gap area, would resume the correction, dragging it lower to the 14,550-14,470 zone.
“The bulls, on the other hand, need to push the index above the 14,850-14,900 zone being the 20-DMA and recent cluster of highs for the continuation of the upmove to 15,100 level,” he said.
Chandan Taparia of Motilal Oswal Securities said the index not only formed a Bearish Belt Hold pattern, but also an Inside Bar as it traded inside the trading range of last session.
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“It has to cross and hold above 147,50 level to witness a bounce towards 14,900 and 15,000 levels. Support for the index exists at 14,600 and 14,500 levels,” Taparia said.
