During the day, the index tested 16,400 levels. This is the level at which the index has faced resistance in the last two weeks, with analysts believing that the index could be in for a range-bound action in the upcoming session.
“The 16,400 level has proved to be another strong barrier. The hourly chart shows that the upper end of an upward sloping channel has also created a pressure around 16,400. This is being done, “said Gaurab Ratnaparkhi
For the day, the index lost 51.45 points, or 0.32 percent, to close at 16,214.70.
Srikanth Chauhan of Kotak Securities said the Nifty 50 has formed a double top formation on the intraday chart and on the daily chart it has formed a ‘hammer’ candlestick which is widely negative.
“For day traders, 16,200 will serve as an important support level, and below that, we see a rapid intraday correction to 16,100-160,50. Conversely, a new uptrend is only possible after a breakout at 16,300 intradays. 16,400-16,475, ”Chauhan said.
Chandan of Securities said the index produces an inside bar and a bearish candle on a daily scale. As long as it remains below the 35,500 zone, Taparia said weakness could be seen towards the 35,000 and 34,750 levels. Resistance has been set at 35,750 and 36,000 levels, he said.
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