Sameet Chavan of Angel Broking said a follow through selling in the next couple of sessions may confirm a short-term correction in the market. For Wednesday, this analyst believes the 18,350-18,300 range will be keenly watched.
“A sustainable move below this level would be considered as a first sign of weakness. On the flipside, the 18,500 -18,600 zone has now become an immediate hurdle,” he said.
The index closed the day at 18,420, down 56.85 points or 0.31 per cent.
“For day traders, 18,550 and 18,600 levels would be the immediate hurdles and below the same, a correction wave could continue up to the 18,350-18,300 zone. On the other hand, breakout formation will continue above the 18,600 level up to 18,650 and 18,675 levels. Contrarian traders can take a long bet near the 18,300 support level with a strict stop loss at 18,250,” said Shrikant Chouhan of Kotak Securities.
Independent analyst Manish Shah said the index saw selling after hitting the top end of the price channel. The MACD is in the ‘buy’ mode and the Directional movement index is still showing a strong upward bias, he said, adding that major support for Nifty50 is in the 18,050-18,100 zone and that there could be a steady drop to this level in coming days.
