Nifty50 is currently placed near the 78.60 per cent of Fibonacci retracement while any further sell-off could drag it towards the psychological mark of 16,000 in the near future, said Osho Krishan of
“The unfilled gap of 16,480-16,650 is the
wall for the bulls. Hence, looking at the technical setup, the market is likely to trade in the mentioned range until a breakout on either side is seen in a decisive manner,” Krishan said.
For the day, the index closed at 16,240.05, down 61.80 points or 0.38 per cent.
“Usually, it is observed that after the big corrections, the initial pullback attempt will be sold off due to a lack of conviction about the sustainability of the pullback move. Hence, at times, such formations will eventually pave the way for a pullback rally. Moreover, our twin momentum oscillators generated a buy signal. Therefore, we expect the indices to consolidate around 16140 levels with a positive bias,” said Mazhar Mohammad of Chartviewindia.in.
Nagaraj Shetti at
Securities said the short-term trend of Nifty50 continues to be negative.
“An attempt of upside bounce from the low seems to have completed in the last two sessions and the market is placed for further weakness. The near term downside target remains at 15,700 level. On the upper side, 16,400-16,500 levels could be strong overhead resistance for the short term,” Shetti said.