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Technology view: Nifty50 can stay in range; 17,350 to provide support

Nifty50 on Wednesday rallied for the second consecutive session and formed a small bullish candle on the daily chart. Analysts say the 50-pack index could trade a range bound positive bias as long as it trades above the 17,350 level. They say a drop below this level could attract selling pressure.

A small positive candle placed next to the previous session’s long positive candle indicates a limited movement in the market range after a rally. This also reflects the lack of selling interest in the last few sessions following a sharp bearish reversal on August 19 and August 22, said Nagaraj Shetti, Technical Research Analyst.

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Shetti said Nifty50 is placed at the 23.6% Fibonacci support as well as the 20-day EMA around 17,340 and the positive histogram pattern such as higher tops and lowers remains intact.

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“We expect to continue to increase in the next session. However, if the short-term oversold volume does not appear in the next 1-2 sessions, the market may face another round of selling pressure,” he said. speak.

During the day, the index closed at 17,604.95, up 27.45 points, or 0.16%.

“If the bulls fail to sustain above 17,499, it could eventually head towards the 20-day simple moving average, which is valued around 17430. In a word, in the future, a consolidation is possible. expect between the 17,710 and 17,400 levels, while the downtrend will resume on a close below 17,345,” Mazhar Mohammad said of

Chartviewindia.in.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan, said the price action over the past few sessions shows an overlapping structure.

“The index has now reached near the intersection of the 40-hour exponential moving average and the upper hourly Bollinger Band. This setup suggests that the next drop is near the corner. On the downside, 17,350-17,300 will be the initial target zone, below 17,000 will be the overall short-term target. On the other hand, 17,650-17,700 is the main hurdle that is expected to sustain the upside momentum,” Ratnaparkhi said.

Bank Nifty
Kunal Shah, Senior Technical Analyst at

, which considers the index a better factor, has broken past the immediate resistance of 39,000. The index remains in buy-down mode with immediate support at 38,500, where a strong base has been formed, Shah said.

“The next hurdle on the upside is set at 39,200 and once removed will see even shorter coverage towards 40,000 on the upside,” he said.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)

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