The 14-day relative strength index (RSI) has slipped from an overbought zone (70) and Stochastic suggests negative crossover. Analysts said the index has support at 18,200 level while they see 18,600 as a key hurdle for the index.
“On a daily chart, the stock has been trading with a support of 9-Day moving average and sustaining the same can resume the uptrend. The index has immediate support at the 18,200 level while the upside resistance is intact at 18600 level,” said Palak Kothari of Choice Broking.
For the day, the index closed at 18,266.60, down 152.15 points or 0.83 per cent.
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“Nifty50 continued its slide which perhaps may be confirming some sort of corrective downswing is in place with a short term top around 18,604 levels. Moreover, this correction brought the index down below the 5-day SMA, hinting at short term weakness. Unless the index recovers and closes above 18,600 level, a strength is unlikely,” said Mazhar Mohammad of Chartviewindia.in.
Mohammad said if the index defends 18,200 level and recoils with a close above 18,458 levels in the next couple of trading sessions, some sideways consolidation would be in place.
Independent Analyst Manish Shah said that the index is trading within an upsloping channel and the channel line could offer support at 18,050-18,100.
“We are still a bit away from the support zone. We also have a gap in the area. A decline towards the support zone of 18,050-18,100 coupled with a bullish candlestick pattern is what we wait for,” he said.
