While the MACD indicator remains in a buy mode, the headline equity index Nifty formed a strong bearish candle and a bearish engulfing pattern on a daily scale, restricting its upside momentum.

Analysts said the index’s moving averages have also started to inch higher.

“Now, it has to be above 17,580 zones for an up move towards 17,777 and 17850 zones, whereas supports are placed at 17,580 and 17,442 zones,” said Chandan

of .

Options data suggests a trading range in between 17,450 to 17,800 zones.

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

Rupak De, Senior Technical Analyst at
During the day, the Nifty remained above the previous consolidation high, suggesting a rise in optimism. Over the short term, the trend is expected to remain strong. On the higher end, resistance is visible at 17,950. On the lower end, support is placed at 17,550/17,400.

Deepak Jasani, Head of Retail Research, Securities
Nifty is undergoing a small pullback after the recent rise. 17,778-17,811 could be the resistance for the Nifty in the near term, while 17,568-17,584 band could provide support.

Manish Shah, Independent trader and coach
The larger degree trend since the last three months is sideways between 18,100-16,800. As such, the major barrier for Nifty is at 18,100. If Nifty moves above 18,100, expect it to show a fast rally from thereon.

Ajit Mishra, VP – Research, Broking
While the global markets are still not portraying any clear trend, the recent buying in heavyweights, especially from the banking pack, has lifted the sentiment. We may see some consolidation in the index ahead, but the tone is likely to remain positive. The focus should remain on identifying stocks from the sectors participating in the move without losing focus on risk management, citing volatile global markets and prevailing earnings season.

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