Rohit Singre, Senior Technical Analyst at LKP Securities said Nifty50 has formed a small consolidation zone of 17,600-18,000.
“Unless we don’t see a breakout on either side, we may not see a clear directional move. Profit booking can be witnessed towards the immediate support zone of 17,750-17,700 zone,” Singre said.
For the day, the headline index closed at 17,829.20, down 59.75 points or 0.33 per cent.
“Nifty50 appears to be in a consolidation mode, as profit booking continued for the last two trading sessions, without violating the short-term critical support of 17, 697 levels. In case the index breaches the said support, it should ideally threaten the recent low of 17,613 levels but a resumption of the downtrend will be confirmed on a close below the 50-day EMA, whose value for next session is placed around 17585 levels,” said Mazhar Mohammad of Chartviewindia.in.
Mohammad said strength in Nifty50 will be expected only on a close above 18,000 level and in such a case 18,200-250 levels are likely.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said the index failed to sustain above its key hourly moving averages.
“The hourly chart shows that the Nifty50 is facing resistance near the hourly upper Bollinger Band and the 50 per cent retracement mark for the last couple of sessions. Structurally, the short-term consolidation process is expected to continue further. The downside is expected to be restricted to 17,600 for the short term while 18,000 will continue to act as a cap for the short term,” said Ratnaparkhi said.