On the weekly scale, the index formed a bullish candle with a long upper wick, reflecting selling during the latter part of the week. Analysts said Nifty may trade in the 14,500-14,900 range in the coming days.
“Nifty50 has filled up the gap are at 14,667-14,695 that was created during the recent rise. The selling got abated near the key moving averages. From here on, the index is expected to start recovering and surpass the 15,000 mark soon. Downside support exists in the 14,500-14,600 range,” Gaurav Ratnaparkhi of Sharekhan.
For the day, Nifty closed at 14,631, down 263 points or 1.77 per cent.
Mazhar Mohammad of Chartviewindia.in said Friday’s fall erased gains of the past two sessions. He said a close below the bullish gap area, registered on April 28, should ideally offer some buying support.
ETMarkets.com“If Nifty50 fails to sustain above 14,600 level, it may initially head towards the14,450 level, where the 100-day simple moving average is placed and which has in the past offered support on a closing basis. For the time being, Thursday’s high of 15,045 could be a near-term top. Positional traders with high risk appetite can make use of rallies to create short positions and look for an initial target at 14,450 level. A close above the 14,900 mark can be considered the initial sign of strength,” Mohammad said.
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Sumeet Bagadia of Choice Broking said a close below the 50-day moving average points towards weakness. “Hourly momentum indicator MACD is showing a negative crossover, which suggests further downside movement. At present, Nifty has support at 14,500 level while the upside resistance seems at 15,000 level,” he said.
Nirali Shah, Head of Equity Research at Samco Securities, advised traders to maintain a cautiously bearish outlook and keep strict stop loss below 14,150 level for long positions.
