Tech View: Nifty bulls eye more gains; key support at 17,050, say analysts


NEW DELHI: Nifty50 on Thursday took out the 17,200 level in a session dominated by the bulls. The index formed a bullish candle on the daily chart and made a higher high-low formation for the fourth successive day. Analysts see good chances of the index moving towards the 17,300-17,400 range. Key support for the NSE barometer now stands at 17,050, they said.

Chandan Taparia of Motilal Oswal Securities said Nifty50 needs to hold above 17,150 level to extend its rise towards 17,400 level. He sees downside support for the index at 17,050 and 16,900 levels.

“As of now, there’s no sign of weakness and, hence, we may see the index move towards its next resistance points at 17,270 and 17,330. The near-term support for Nifty50 is now placed in the 17,100-17,050 zone,” said Ruchit Jain of Angel Broking.

For the day, Nifty closed at 17,234, up 157.90 points or 0.92 per cent.

If Thursday’s rally was F&O-expiry induced and the index fails to sustain above 17,250 level, Nifty may slip into the consolidation mode, said Mazhar Mohammad of Chartviewindia.in.

Nonetheless, he said the momentum has a positive bias and that dips would remain an opportunity for investors to go long on Nifty50 with stop loss below the 17,050 level.

“The index’s support has shifted higher to the 17,175-17,050 zone. If it manages to hold above the said range, we may see more upside. One can look for fresh buying opportunities around this range. A failure of the index to hold above the range may trigger profit booking. A strong hurdle for Nifty50 stands in the 17,300-17,350 range,” said Rohit Singre, Senior Technical Analyst at LKP Securities.



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