The Nifty50 on Monday ended higher after two days of fall. The index formed a bullish candle on the daily chart and stayed in a broader range. Analysts said the index faces resistance at 17,780-800 a breach of which can attract buying. They see immediate support at 17,500. It’s a buy-on dips market, they said.

Nagaraj Shetti, Technical Research Analyst at

Securities, said a positive candle after a negative one on Friday indicates a range-bound action for the market, with positive bias.

“A sustainable buying could only emerge on the move above 17,800 level, and the slide below the immediate support of 17,300 could pull Nifty50 down to the next support of 17,000 level for the near term. However, weekly and monthly charts are still positive, and one may expect any downward correction to be a buy on dips opportunity,” Shetti said.

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For the day, the index closed at 17,665.80, up 126.35 points or 126.35 points or 0.72 per cent.

Gaurav Ratnaparkhi of Sharekhan said the index is witnessing a short-term consolidation for the last few sessions, where the upside has been restricted at 17,700-17,780 levels.

“This zone is likely to attract a fresh round of selling. Structurally, the index is preparing for a downward move within the overall short-term consolidation. On the downside, 17,540-17,500 is an immediate support zone, below which it will be set to test 17,200. The hourly & the daily Bollinger Bands are in contraction mode, thus suggesting that the range bound action can continue in the short term where the range would be 17,200-18,000,” he said.

Independent analyst Manish Shah said the pattern playing out seems to be a Bullish Flag or Pennant. He said the index faces hurdles at 17,750-17,800 and considering the pattern in play and the inability of the seller to push the market lower in the last 10-odd days simply exemplifies the resilience of Nifty50 against other world equity markets.

“Nifty50 needs a push out 17,750-17,800 for an unbridled assault on 18,100 and if 181,00 gets taken out expect a full move up to 18,600-18,900,” he said.

Nifty Bank
Kunal Shah, Senior Technical Analyst at

said the banking bulls continued to have the upper hand as the banking index closed near its immediate hurdle of 39,800.

The index is trading in a strong uptrend with higher top and higher bottom formations intact on all the time frames, Shah said, adding that once the index surpasses the mentioned hurdle, it will see a strong move on the upside toward the 41,000-41,500 zone.

“The lower-end support stands at the 38,800-38,500 zone where fresh put writing has been observed,” Shah added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)


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