Tech View: Nifty50 may stay rangebound; 17,350 to offer support

Nifty50 on Wednesday rose for the second straight session and shaped a small bullish candle on the each day chart. Analysts mentioned the 50-pack index would possibly commerce vary certain with a optimistic bias so long as it trades above the 17,350 stage. A fall beneath this stage could appeal to promoting stress, they mentioned.

A small optimistic candle that’s positioned beside the lengthy optimistic candle of the earlier session signifies a range-bound motion out there after a pullback rally. This additionally displays a scarcity of promoting curiosity within the final couple of periods after a pointy reversal on the draw back on August 19 and August 22, mentioned Nagaraj Shetti, Technical Analysis Analyst,

Securities.

Shetti mentioned Nifty50 is positioned on the 23.6 per cent Fibonacci help in addition to 20-day EMA round 17,340 and the optimistic chart sample like increased high and backside continues to be intact.

“We count on additional upside within the coming session. Nonetheless, if the brief coverings do not emerge within the subsequent 1-2 periods, the market may face one other spherical of promoting stress,” he mentioned.

For the day, the index closed at 17,604.95, up 27.45 factors or 0.16 per cent.

“If the bulls fail to maintain above 17,499, ultimately it could actually head in the direction of its 20-day easy shifting common, whose worth is round 17430. In easy phrases, going ahead, consolidation will be anticipated between 17,710 and 17,400 ranges, whereas a downtrend shall resume on a detailed beneath 17,345 ranges,” mentioned Mazhar Mohammad of

Chartviewindia.in.

The value motion within the final couple of periods exhibits an overlapping construction, mentioned Gaurav Ratnaparkhi, Head of Technical Analysis at Sharekhan.

“The index has now reached close to the junction of the 40-hour exponential shifting common and the hourly higher Bollinger Band. This setup means that the subsequent leg down is across the nook. On the draw back, 17,350-17,300 would be the preliminary goal space, beneath which 17,000 would be the total short-term goal. Alternatively, 17,650-17,700 is the important thing barrier that’s anticipated to maintain the bounce in verify,” Ratnaparkhi mentioned.

Nifty Financial institution
Kunal Shah, Senior Technical Analyst at

, mentioned that the index was an outperformer, having surpassed the quick hurdle of 39,000. The index stays in a buy-on-dip mode with quick help on the 38,500 stage, the place a robust base has been shaped, mentioned Shah.

“The subsequent hurdle on the upside is positioned at 39,200 and as soon as taken out will see additional brief masking in the direction of the 40,000 stage on the upside,” he mentioned.

(Disclaimer: Suggestions, ideas, views, and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)