The range of 18,000-18,100 will be key to watch, they added, while suggesting 17,850-800 as immediate support range for the index going ahead.
Nifty50 index formed a bearish candle on the daily chart on Tuesday and made a higher high-low formation.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan said the index had broken out from a base triangle on the hourly chart in the previous session and saw some recovery.
“The index made an attempt to continue with the recovery but stumbled near the junction of the 40-hour exponential moving average and the hourly upper Bollinger Band. In terms of the level, the 18,000 mark acted as a key barrier. Though that level was crossed on an intraday basis, the index couldn’t sustain. If the bulls manage to cross it on a closing basis, the short term range will shift higher. A failure will keep the short term consolidation confined to the 17,600-18,000 range,” he said.
The index closed at 17,889, down 41 points or 0.23 per cent.
Rohit Singre, senior technical analyst at said the index has formed a good support zone around 17,850-17,780 levels and holding above the said range can help it trade with a positive bias.
Nifty50 appears to be struggling to get past its 5-day exponential moving average for the last two trading sessions, as the index seems to have witnessed a mild profit booking that resulted in a bearish candle on Tuesday, said Mazhar Mohammad of Chartviewindia.in.
“Hence, the bulls need a close above the psychological resistance point of 18,000 levels to regain positive momentum. In that scenario, a logical target is placed at around 18,250,” he said.
