On Tuesday, the index traded in the 15,701-15,881 range, before closing at 15,746, down 78 points or 0.49 per cent.
Mazhar Mohammad of Chartviewindia.in believes that as long as the index holds above the 15,600 level, a major downswing is likely. He noted that the 50-day simple moving average for Nifty50 is also placed around the 15,650 level.
“The bulls still have a chance to come back from the 15,650-600 range. A failure to defend the said support may cost them dearly, as the bears will gain upper hand. For the time being, traders have no better option than confining themselves to the fence,” he said.
Gaurav Ratnaparkhi of Sharekhan said the index is in a consolidation mode and is moving towards its lower end of the consolidation range.
“On the downside, the junction of the 40-day EMA and the daily lower Bollinger Band, which will offer support near the 15,650-15,600 zone. The index had seen a bounce from those levels last week and the same is expected this time as well. Hence a dip towards 15,650-15,600 can be taken as a fresh buying opportunity from short-term trading perspective,” he said.
Independent analyst Manish Shah said the strategy for a range-bound market is simple: One buys at the support and sells at the resistance.
