Tech View: Nifty50 sees buying on dips; index support seen at 17,500

Despite a gap-down start, the Nifty50 on Wednesday closed marginally lower, forming a small bullish candle on the daily chart. Analysts said the consolidation in the index is intact, and the trend may continue going ahead. The 17,500 level may offer immediate support to the index, analysts said, adding that the upside will be capped in the 17,700-800 range.

Despite the index seeing buying on dips, the near-term trend seems to be sideways, said Mazhar Mohammad of Chartviewindia.in, adding that strength should emerge on a Nifty50 close above 17,777, while weakness should be expected on a close below the 17,400 level.

"Inside this range, there won’t be any better trading opportunities. Therefore, traders are advised to wait and initiate trading positions in the direction of the breakout," Mohammad advised.

For the day, the index closed at 17,624.40, down 31.20 points or 0.18 per cent.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan, said the index attracted buying near the swing low of 17,468 and moved up towards the key hourly moving averages, where it had halted in the previous session.

"Structurally, the consolidation can continue further, and any move towards 17,700 is expected to attract another round of selling. Additionally, the selling pressure can aggravate once the level of 17,500 is breached on a closing basis," he said.

Nifty Bank
Nifty Bank closed the day at 39,455.90, 210.60 points or 0.53 per cent lower.

Kunal Shah, Senior Technical Analyst at LKP Securities, said Nifty Bank is stuck in a broad range of 1,500 points where stiff resistance is visible at 40,000 and support is seen at 38,500.

"The index will witness a trending move on a break on either side. The immediate support stands at 39,200 and if breached, will see a further decline toward the 38,800-38,500 zone. The bias remains on the buy side as long as the mentioned support level is held, "Shah said.

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