Analysts said a fall below 15,400 could trigger further weakness in the index while they see a decisive break above 15,700 a must for further upside.
For the day, the index closed at 15,413.30, down 225.50 points or 1.44 per cent.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities said that the reasonable negative candle signalled a bull trap in the market.
“After a sustainable upside bounce on Tuesday, Nifty showing immediate reaction to the downside in the subsequent session indicates a lack of strength in the market to sustain the upside bounces,” Shetti said.
“The crucial overhead resistance of 15,700-15,800 levels as per the concept of change in polarity has weighed high on the market. After hitting the day’s high of 15707 on Tuesday, Nifty50 showing sharp weakness on Wednesday reflects the significance of the hurdle,” he added.
Unless the Nifty50 closes below the 15,382, according to Mazhar Mohammad of Chartviewindia.in, the weakness will not be confirmed. On such a close, the index
can initially revisit the recent low of 15,183 followed by 14,900.
“However, if the bulls manage to defend 15,182, eventually they can make an attempt to resume the pullback rally with initial targets of 15,700. Considering strong moves of the last two trading sessions in the opposite directions, traders are advised to remain neutral,” Mohammad said.
Osho Krishan of Angel One said that the halt in buying interest after an intense day of rally showcased the tentativeness among market participants at higher levels.
“At the current juncture, the immediate support is likely to be seen around the 15,300 level, wherein the placement of the index above the sacrosanct support of the 15,180-15,200 zone could be seen as the last resort of relief for the bulls,” he said.
“The critical zone of 15,650-15,700 withholds the
wall for the index, and till it is not claimed, it would be a challenging period for the bulls of D-street,” he added.
Nifty Bank
Chandan
of Motilal Oswal Securities said that the index has formed a small-bodied bearish candle on the daily chart and surrendered at higher zones.
“Till it holds below 33,000, weakness may be seen towards 32,500. Upside resistances can be seen at 33,333 and 33,500 levels,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)