This is, as long as the headline index stays above 17,98-level, said Mazhar Mohammad of Chartviewindia.in.
“A fall below that can induce more profit-booking, which may eventually lead to the test of 17,836-level which seems to be critical short term support as of now. If it manages to get past 18,112 on Wednesday, strength will resume with an initial target of 18,190 levels,” he said.
For the day, Nifty50 closed at 18,044.25, down 24.30 points or 0.13 per cent.
“The study of price structure does reveal that Nifty50 is already broken above a falling trendline from the high at 18,600. This signals a trend continuation. The barrier on the higher side is at 18,330-18,350. The weekly expiry in the next two days could be a timid affair. If Nifty50 manages to break out past 18,080, there should be a window of opportunity for a rally to 18,150 as a weekly expiry. Support is placed at 17800,” said Independent Analyst Manish Shah.
Structurally, the Nifty50 is expected to go for a deep retracement of the entire decline from 18,604 to 17,613, said Gaurav Ratnaparkhi of Sharekhan, who believe that the index can march towards the 61.8 per cent and 78.6 per cent retracement mark, which are at 18,225 and 18,392, respectively.
Meanwhile, the daily momentum indicator Stochastic is trading with a positive crossover while the index has been trading above the middle Bollinger band, which adds bullishness, said Palak Kothari of Choice Broking.
“Nifty50 has immediate support at 17,900 while resistance comes at 18,200 level,” she said.
