Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan, said the index oscillated around the key hourly moving averages and the 20-DMA. “Ultimately, it formed an Inside Bar pattern on the daily chart. The overall structure shows that the index is in short-term consolidation since the last couple of weeks and that is likely to continue going ahead,” he said.
For the day, the index closed at 17,542.80, down 216.50 points or 1.22 per cent.
Nagaraj Shetti, Technical Research Analyst at Securities, said the index is placed in a broader range of 17,350-17,750 levels and consolidation with some volatility is likely in coming sessions.
“After reaching down from the important trend line resistance at 17,900 levels in the last month, the index made another attempt towards the hurdle of the trend line around 17,800 on Tuesday, before witnessing another round of selling pressure. There is a possibility of an upside bounce from near the lower support of 17,350-17,300 levels in the short term. Immediate resistance is placed at 17,650,” Shetti said.
Mazhar Mohammad at Chartviewindia said it is crucial for the bulls to protect the bullish gap zone of 17,401 and 17,380 levels registered on August 30, as the breach of the same on a closing basis can give the upper hand to the bears.
“In that scenario, initially, weakness shall extend to the recent lows of 17,166 levels. Considering the strong moves of the last two trading sessions, in the opposite directions, traders are advised to remain neutral on the index positions,” Mohammad said.
Nifty Bank
The banking index closed the day at 39,301.25, down 235.50 points or 0.6 per cent.
Kunal Shah, Senior Technical Analyst,
, said after a gap-down opening, the index managed to hold the support of 38,800-38,500 on the downside, indicating the bias remains on the positive side. The immediate hurdle on the upside is placed at 39,500, and once taken out, the index will see a sharp move towards 41,000.
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