Analysts are a bit optimistic but believe the 15,820 level may act as the immediate resistance. They see strong support for the index at 15,650, which is around its 50-day simple moving average.
“The index has formed a good base in the 15,750-15,650 range. If the index holds on to the range, one can expect a bullish momentum to emerge. Any dip around the mentioned range will be a buying opportunity, as we may soon head towards the upper band of the consolidation range at 15,950-16,000,” Rohit Singre of
.
For the day, the index closed at 15,778, up 69.05 points or 0.44 per cent. The index closed almost at its 5-day and 20-day simple moving averages.
“The 15,600 level looks sacrosanct to watch out for, as a breach of it may unleash a sharp corrective downswing. Unless the 15,900 level is decisively cleared, a sustainable bounce is unlikely. That said, weakness on Friday can be expected if the index closes below 15,737 level, which may initially lead to the testing of 50-day simple moving average, whose value is placed around 15,670 level,” Mazhar Mohammad of Chartviewindia.in said.
Shrikant Chouhan of Kotak Securities said the 50-day SMA could act as strong support to the index.
“The texture of the chart suggests trading below the 20-day moving average would increase further weakness. On the other hand, the uptrend may continue up to 15,900 level if Nifty50 manages to trade above 15,820 level,” he said.
