The index hovered just above the 17,250 level during the session, before making a smart recovery. It closed the day at 17,353, still down 8.60 points or 0.05 per cent.
Gaurav Ratnaparkhi of Sharekhan said the selling pressure had got absorbed near the junction of the 40-hour EMA and the hourly lower Bollinger Band and a recovery was seen thereafter.
“Structurally, this bounce is a part of the consolidation process and is expected to be followed by another round of selling,” he said.
Rohit Singre of LKP Securities said Nifty50 failed to cross above its immediate swing of 17,440 and the level would now act as immediate resistance for the index. He sees support for the index in the 17,300-17,250 range. “Traders can use this range as trailing stop loss,” he said.
Mazhar Mohammad of Chartviewindia.in said even though the bulls made attempts to come back with intraday recoveries, they looked indecisive for the third session in a row.
“Unless a strong close is registered above the 17,436 level, further strength shall not be expected. On such a breakout, higher targets towards the 17,600 level are likely. If weakness continues below the 17,250 level, the test of a critical short-term support present at the 16,990 level can’t be ruled out. Therefore, as our twin momentum oscillators are in the sell mode, we advise traders to stay neutral on the long side,” he said.
