For the day, Nifty50 closed at 18,210.95, down 57.45 points or 0.31 per cent. During the day, the index faced pressure as it neared 61.8 per cent retracement of the recent fall, said Gaurav Ratnaparkhi of Sharekhan.
“The rise in the last couple of sessions is showing overlapping structure on the hourly chart. This means that it is a part of the consolidation process. On the downside, the Nifty50 can revisit the crucial mark of 18,000 where it is expected to take support near the 20-DMA. On the higher side, Wednesday’s high of 18,342 will now act as a near-term barrier. Overall, the Nifty50 is expected to continue with the short-term consolidation,” Ratnaparkhi said.
After Wednesday’s profit-booking, more weakness should be expected on Nifty50, provided it slips below 18,099 in the next trading session, said Mazhar Mohammad of Chartviewindia.in.
“Sustaining a level below 18,099 may drag the index towards the swing low of 17,968 levels. Contrary to this, an intraday strength can be expected if the index sustains above 18,342 levels,” he said.
Independent Analyst Manish Shah said he would continue to be watchful of the market and would await a breakout of the resistance at 18,350 for any upside.
“Support for the Nifty50 is at 17,950. If this support gets taken out, we may see a decline to 17,800 or lower. We expect Nifty50 to remain subdued due to the October expiry on Thursday. It may trade in a range for a day or two,” Shah said.
