Chandan Taparia said that the bullish candle on the weekly scale has a long lower shadow, indicating buying was seen at declines but hurdles are intact at higher levels. For him, a Nifty50 hold above 17,000 is a must for an upmove towards 17,200 and 17,350. Taparia sees support at 16,900.
Nifty50 closed the day at 17,003.75, down 68.85 points or 0.4 per cent.
Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan said, the testing of the hourly upper Bollinger Band and the 20-DMA attracted a fresh round of selling.
He said, Nifty50 formed a bearish Outside Bar along with an Engulfing bear candle on the daily chart and felt Friday’s high of 17,155 becomes a crucial resistance.
“Structurally, the recent bounce looks matured at 17,155 and the Nifty50 can slide down towards its daily lower Bollinger Band, which is near 16,700. Overall, the short-term consolidation is expected in the range of 17,155-16,700,” Ratnaparkhi said.
Independent Analyst Manish Shah said, Nifty50 experienced a false breakout as it dipped below the previous swing low at 16,800 and reversed sharply at the end of the week.
“This underlying action does compel the belief that the Nifty50 may have bottomed out. Most oscillators also show signs of a positive reversal. The first confirmation of a reversal may come if the Nifty moves above the falling trendline coming down from the highs. For that, it needs to break above 17,300-17,320 on a strong conviction candle,” he said.