Analysts said the recovery attempts in the last couple of days have met with renewed selling pressure, as the bears are trying to gain the upper hand. The range of 17,950-18,050 is likely to offer strong support to the index, they said.
Mazhar Mohammad of Chartviewindia.in said the 4-day selloff has dragged Nifty50 towards its critical support of 21-day exponential moving average, whose value is placed at 17,950.
“If weakness in Nifty50 gets extended, this is where the index may ideally find some support and attempt a pullback,” he said.
Independent Analyst Manish Shah said the index has a gap area in the 18,010-18,050 range and that a rising moving average is placed at 17,972. The four-day decline, he said, is more of a sentiment knock-off rather than a serious case of a top.
“We consider this to be a normal decline within the ebb and flow of market trends. The support zone at 18,010-18,050 seems to be holding and the four-day decline seems to be losing pace.; at least on the lower time frame. Nifty50 needs to push above 18,300-18,500 to confirm a bottom at 18,000,” he said.
For the day, the index closed the day at 18,114.90, down 63.20 points or 0.35 per cent. Nifty Bank, on the other hand closed at 40,323.65, up 293.45 points or 0.73 per cent.
“Two major indices Nifty50 and Nifty Bank are showing a complete divergence. It would be interesting to see whether the Nifty Bank strength lifts Nifty higher or vice versa. As far as levels are concerned, 18,060-18,000 are to be considered as crucial supports while 18,260-18,400 would be seen as immediate hurdles,” said Sameet Chavan of Angel One.
