NEW DELHI: Nifty50 on Tuesday failed to capitalise on the intraday gains, as it faced selling pressure near the 11,450 level. The index tested the 11,300 level at the fag-end, before closing the session at 11,317. It formed a small bearish candle on the daily chart. Nifty has been making small candles for a couple of sessions now, suggesting consolidation. A fall below the 11,250 level may attract selling, analysts said, who believe the 11,450 level may continue to be the immediate hurdle for Nifty.
For now, the index is trading between the 20-day and 40-day moving averages, which are the key short-term targets.
“The index hit a new low on the closing price chart in this corrective swing, which is in progress from the high of 11,794 level. This correction will be accelerated further going forward if Nifty falls below 11,250 level towards an initial target of 11,100,” said Mazhar Mohammad of Chartviewindia.in.
For the day, Nifty fell 37.70 points or 0.33 per cent.
“The 11,450 level is emerging as a critical short-term resistance. Hence, positional traders can use any rally in the 11,390-430 zone to create fresh short positions,” Mohammad said.
Chandan Taparia of Motilal Oswal Securities said the index is facing a hurdle near the 11,450 level. As long as it remains below this mark, weakness can be seen towards 11,250 and then 11,200 levels. Key resistances are placed at 11,450 and 11,500 levels, he said.
Aditya Agarwala of YES Securities said Nifty has failed to sustain beyond the 20-DMA placed at 11,400 and a trade below 11,280 level in the coming session can drag it lower to 11,250 and 11,165 levels.
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“A move beyond 11,350 level, which happens to be the midpoint of last three sessions, may trigger short-covering rallies to 11,440 and 11,450 levels. Technical indicator RSI is facing resistance in the 50-60 zone, indicating early signs of a range shift in favour of the bears and a breach of the recent low at 11,250 may trigger a deep correction in the coming days,” he said.
Gaurav Ratnaparkhi of Sharekhan expects the index to continue sideways action going ahead.