Domestic equity benchmark index Nifty50, which closed Wednesday’s session well above the 17,100 mark, an important Fibonacci level, formed a bullish harami pattern on the daily charts suggesting a rise in optimism. The index found support at 200-DMA for the second consecutive day.

Analysts said the overall structure shows that the index is likely to witness consolidation and short-term buying in the range of 17,000-17,300. “Now it has to hold above 17071 zones for an up move towards 17,250 and 17,333 zones whereas supports are placed at 16,950 and 16,888 zones,” said Chandan

of .

Options data suggested a shift in a lower broader trading range between 16600 to 17500 zones while an immediate trading range between 16,800 to 17,300 zones.

What should traders do? Here’s what analysts said:

Rupak De, Senior Technical Analyst at

The daily RSI is in a bullish crossover. Over the short term, the index may remain within a band. On the lower end, 17000 may act as support, whereas 17,300 may act as resistance on the higher end.

Ajit Mishra, VP – Research, Broking

We feel it’s just a respite in a corrective phase, and the tone would remain negative until Nifty decisively reclaims 17,400 levels. Amid all this, the buoyancy in the banking space is capping the damage so far, while others are seeing a mixed trend. We feel it’s prudent to stay light in the prevailing scenario and keep the existing positions hedged.

Nagaraj Shetti, Technical Research Analyst, Securities
The short-term trend for Nifty is range bound with positive bias. The market is now attempting to form a short-term higher bottom formation around 16,950 levels. A sustainable move above the hurdle of 17,260 levels could confirm more upside for the near term. Immediate support at 16,950 levels.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The recovery doesn’t seem sustainable as multiple negative factors are at play. Technically, the Nifty took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. As long as the index is above the 17,000 mark, the pullback formation is likely to continue. Above the same, the index may touch the level of 17225-17275. On the flip side, below 17,000, the index could slip till 16,900.

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