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NEW DELHI: Nifty50 on Wednesday fell for the third straight day and formed a bearish candle on the daily chart, in as many trading sessions. During the session the index managed to defend the 16,000 mark and continued its recent consolidation. Analysts said rangebound moves may continue in coming days and that any upside on Nifty50 will face hurdles at the 16,400 level.

For the day, the index closed at 16,025.80, down 99.35 points or 0.62 per cent.

Independent Analyst Manish Shah said the bearishness in the market is palpable, but the fact remains that the Nifty50 has not made a new low since May 16.

“This range-bound action could be classified as an accumulation at the support zone or re-distribution. The pattern is not clear at the moment. The MACD has moved into a buy mode, but there is no confirmation from price. Nifty50 could remain in this range of 15,700-16,400 for a prolonged period. We need to wait for confirmation of the direction of the market,” Shah said.

Subash Gangadharan of HDFC Securities said while Nifty50 could see pullback rallies, the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15,735 is broken, he warned.

Mazhar Mohammad of Chartviewindia.in said if the bulls fail to make a comeback on Thursday, it may eventually test the recent low present at around 15,775 level.

“Contrary to this, any strength in the near term shall take the indices towards the upper end of the trading range present around 16,400 level. More weakness should be expected in the index if it closes below 16,000. For the time being, traders should adopt a wait and watch approach,” he said.

Nifty Bank

Chandan of Securities said the index formed a Doji candle on the daily scale and that it has to hold above 34,000 to build strength towards 34,500 and 34,750 levels.

The downside supports exist at 33,750 and 33,666 zones, he said.

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


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