stock market analysis: Tech View: Nifty50 formed a small bearish candle; Big obstacles ahead

Analysts think that the index is nearing important resistance levels and the 17,700-800 zone might be a strong barrier for the index in the near future.

“If we draw a trendline connecting the October 2021 high and the subsequent highs, Nifty50 currently approaching the resistance zone of 17,900-18,000. Here is a make or break range for Nifty50. Independent analyst Manish Shah said if the index doesn’t go above 18,000, we could see a serious drop.

Smart talk

“We expect Nifty50 overall to stay bullish until 17,900-18,000 and one needs to be cautious as it is approaching a major hurdle,” he added.

During the day, the index closed at 17,659, up 124.25 points, or 0.71%.

Nifty continues to remain in consolidation mode, indicating the continuation of the uptrend in the market. On the higher end, however, the Nifty50 faced a bit of semiconductor pressure leading to a close around the intraday low. The current rally can extend to 17,750-17,800, where the key resistance of the trend line is located. Rupak De, Senior Technical Analyst at

. Shrikant Chouhan of Kotak Securities said the index is trading near its key resistance and for traders, 17,600 will be the key support to watch out for.

“While the overall chart structure suggests that if the market sustains above the similar level, the breakout formation could continue until 17,700-17,750. On the other hand, a strong intraday correction could potentially continue until 17,700-17,750. could happen if the index trades below 17,600. Below this level, the index could be Chouhan said.

Bank Nifty
Analysts say that Nifty Bank broke through 38,400 immediately, which should now act as support for the downtrend. They see rising resistance at 39,000. If this level breaks on a close, they will see further upside towards the 40,000 level. That said, the index trades in overbought territory and a take profit scenario cannot be ruled out from current levels, they warn.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of the Economic Times)

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