Tech View: Nifty50 fails in comeback attempts; stay cautious, say analysts

NEW DELHI: Nifty50 on Friday gave up intraday gains and formed what looked like a Shooting Star formation, which suggests the recovery attempt is over. On the weekly scale, the index formed a bearish candle. Analysts said since Nifty50 has been failing in its attempts, it is time to be cautious. The recent recovery attempts seemed to be a dead cat bounce, which means Nifty50 may not have registered a low and there is a chance that 16,800 could get breached, said independent analyst Manish Shah who said that unless Nifty50 moves above 17300 with conviction there could be some downsides in the coming days.For the day, Nifty50 closed at 17,101.95, down 8.20 points or 0.05 per cent.On a closing basis, this still seems to be the lowest close of the current leg of downswing despite the last three sessions of pullback attempt from the recent lows of 16,836 level, said Mazhar Mohammad of Chartviewindia.in."In the next trading session, a failure to sustain above 17,077 may initially lead it to the test of 16,836 and below that test of a 200-day moving average placed at 16,604 can’t be ruled out. In case the bulls manage to defend 17,100 and rise above 17,373, the consolidation zone can remain between 17600 to 16900 levels," Mohammad said.Sameet Chavan of Angel One said he does not see Nifty50 surpassing 17,350-17,500 before the budget. "Whatever breakout has to happen, it is now likely to happen on or after the budget only. Till then, one should expect a range-bound movement and should focus on stock-specific action," he said.Yesha Shah of Samco Securities said traders can maintain a bullish bias as long as the Nifty50 does not fall below 16,850. "A break below the same can trigger a fall up to 16,000 levels. The immediate resistance for the index is placed at 17,650," she said.

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Tech View: Nifty50 fails in comeback attempts; stay cautious, say analysts

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