The index ended up forming a bullish candle on the daily chart. Analysts see a near-term hurdle for the index in the 15,000-15,050 zone while support is likely in the 14,770-14,740 zone.
Gaurav Ratnaparkhi of Sharekhan said a falling trendline, the daily upper Bollinger Band and a key swing high are all present in the 15,000-15,050 range.
On the other hand, Ratnaparkhi finds immediate support for Nifty in the 14,770-14,750 zone, where the 40-hour exponential moving average, hourly lower Bollinger Band and the lower end of a reverse rising channel lie.
“A dip towards this support range can be taken as a fresh buying opportunity. The overall outlook continues to be positive. Once the consolidation gets over, the index is expected to eventually break out of the 15,000-15,050 barrier,” he said.
For the day, Nifty closed at 14,850, down 91.60 points or 0.61 per cent.
“The index held above the support of the 50-period moving average, whose value is placed at 14,737. If Nifty breaks below this average, there could be a decline to the 14,570-14,550 zone. For Nifty50 to move higher, it is imperative that it breaks above the 15,000-15,050 zone. Thursday’s session will see weekly expiry, when it could again be a low-volatility play,” said Independent analyst Manish Shah.
Mazhar Mohammad of Chartviewindia.in, however, is not looking much into the 50-day simple moving average, as the average has failed to act either as a support or resistance in this consolidation phase of last three months.
Check out the candlestick formations in the latest trading sessions
https://economictimes.indiatimes.com/markets/candlestick-screener
This analyst is rather focused on Nifty50 sustaining above the 14,771 level. “A breach of that level can initially drag the index towards its 100-day simple moving average, whose value is placed around the 14,550 level and which has acted as a strong support in the past on a closing basis,” he said.
