Tech View: Nifty forms bullish candle; resistance likely at 17,500

A late rebound on Wednesday helped Nifty50 take its winning run to the sixth trading session. The index ended up forming a bullish candle with a long lower-wick, suggesting the bulls are not ready to give in as yet.

Gaurav Ratnaparkhi of Sharekhan said the index is stretching higher, after hovering near the 61.8 per cent retracement of the entire decline from October 2021 to June 2022 (i.e. near 17,300) in the last couple of sessions.

“It is marginally away from its subsequent target of 17,500, which is 78.6 per cent retracement of the April-June decline. Once that is tested then the Nifty50 is expected to step into a short term consolidation mode,” Ratnaparkhi said.

For the day, the index closed at 17,388.15, up 42.70 points or 0.25 per cent.

The index did not violate the intraday low of Tuesday’s session and instead smartly recoiled after hitting a low of 17,225.

“Technically speaking a close below 17,225 can trigger a short-term downswing with an initial target of 17,018 and 16,947. Contrary to this, a close above 17,390 can extend the upswing towards 17,550 level. For the time being intraday traders with a high-risk appetite can go long above 17,400 for a modest target of 17,500 with a stop below the intraday low,” said Mazhar Mohammad of

Nifty Bank

Nifty Bank closed the day at 37,989.25, down 34.75 points or 0.09 per cent.

Kunal Shah, Senior Technical Analyst at

said the index witnessed sideways action ahead of the RBI policy outcome.

“The index needs to close above 38,200 for a continuation of the uptrend towards the level of the 38,500-38,700 zone. The index downside support stands at 37500 and if breached will witness further selling pressure towards the 37,000 zone. The index will give a clear direction once a policy is announced,” 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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