The 17,600-550 levels may emerge as key support for Nifty50 now, while the 17,900-950 range may pose a crucial hurdle, they said.
“Structurally, the consolidation over the past few sessions has taken a triangular form. With Thursday’s bounce, Nifty50 has once again tested the upper end of the pattern and formed distribution over there throughout the day. The index is expected to slide down towards the lower end of the pattern, which is near the 17,550 level. On the flip side, the resistance zone at 17,900-17,950 will continue to put pressure on the higher side,” said Gaurav Ratnaparkhi of Sharekhan.
For the day, the index closed at 17,790.35 , up 144.35 points or 0.82 per cent.
“Nifty50 did manage to shake off the bearishness of the previous session, but it seems the index could be moving in the 17,950-17,400 range for some time. The pattern playing out is a pause, before the trend resumes. The market is uncertain which way it wants to go. The directional movement is bullish and the RSI is above 60. What we need is a bullish move above the 17,950 level,” said independent analyst Manish Shah.
Mazhar Mohammad of Chartviewindia.in said the index may be entering a phase of high volatility where the index behaviour will remain highly uncertain. “Weakness shall not be expected unless Nifty50 closes below the 17,600 level,” he said.
