Mazhar Mohammad of Chartviewindia.in said Thursday’s indecisive price action was seen after a similar indecisive formation in the previous session, which suggests the momentum is tilting in favour of the bears.
The inability of the bulls to sustain above 16,603 in the next session could drag the index towards its 13-day SMA, whose value is placed at 16,484 level, Mohammad said.
“For resumption of strength, Nifty50 needs a strong close above 16,700 level. In that scenario, a higher target in the 16,950-170,00 zone can be expected. For the time being, traders are advised to remain neutral and consider intraday shorting below 16,600 level for a modest target of 16,490,” he said.
Gaurav Ratnaparkhi of Sharekhan expects Nifty50 to see a minor degree dip over the next couple of sessions, as short-term momentum indicators are pointing towards a potential dip.
“The index looks set to test the levels of 16,500-16,400 on the downside. Nevertheless, what we are expecting is a short-term consolidation. The medium-term outlook continues to be positive,” he said.
For the day, the index closed at 16,636, up 2.25 points or 0.01 per cent.
