For the day, the index closed at 17,397.50, up 15.50 points or 0.09 per cent
“The market may be losing its momentum as the index witnessed a narrow move of 346 points for the week. The sell signals on some of the daily momentum oscillators are accompanied by overbought levels on the weekly charts, perhaps hinting at an impending downswing. A weakness in the next session below 17,348 can drag it towards 17,160. Strength can be expected only at a close above 17,500, which should expand the rally towards 17,800,” said Mazhar Mohammad of Chartviewindia.in.
The analyst advised traders to avoid long positions in the index unless it closes above 17,500.
Gaurav Ratnaparkhi of Sharekhan said Nifty50 has posted a positive weekly close for the third consecutive week but the upside momentum has slowed down.
“For the last couple of sessions, Nifty50 is hovering around the 78.6 per cent retracement of the April-June decline, which is near 17,500. Over there the index formed a bearish Outside Bar and a Hanging Man candle on Thursday and an Inside Bar on the daily chart today. This shows that the index is witnessing a brief distribution and is preparing for a short term consolidation,” Ratnaparkhi said.
“17,000-17,500 is expected to be the short term consolidation range within which the index is set to test the lower end of the range i.e. 17,000 in the coming sessions,” he added.
Kunal Shah, Senior Technical Analyst at
said Nifty Bank witnessed sideways consolidation throughout the week and is stuck in a broad range between 37,200-38,200 levels. The index needs to break on either side on a closing basis for trending action, he said.
“The index on the intraday chart is trading in an oversold category and the profit booking scenario cannot be ruled out from current levels, ” Shah said.
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