The index failed to take out its 50-day moving average, whose value now stands at 14,760. That said, it negated the lower highs it was making for the previous three sessions. The short-term trend remains weak, but analysts advised traders to buy on dips.
“Nifty50 has become slightly tricky in the monthly expiry week, because the heavyweight financial space is not letting the index go beyond the 14,800 mark, even as other pockets are providing strong support at lower levels,” said Sameet Chavan of Angel Broking.
Chavan said one can watch out for the 14,800-14,875 range as key resistance zone, while levels around the 14,700-14,600 should act as key support, he said.
For the day, Nifty closed at 14,736, down 7.60 points or 0.05 per cent.
Rajesh Palviya of Axis Securities said the index is trading below its 20-day SMA, indicating a negative bias in the short-to-medium term.
“However, it remains in an uptrend in the medium and long term and, thus, buying on dips continues to be our preferred strategy. Daily strength indicator RSI is moving downward and is quoting below its reference line, indicating a negative bias,” he said.
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Mazhar Mohammad of Chartviewindia.in said Nifty50’s upsides these days are getting capped around its 50-day simple moving average. But he sees the 14,788 level as key, which can initially push Nifty to 14,875-14,950 zone.
“For the time being, short-term traders are advised to wait for a decisive move beyond the 14,790 level to go long for an initial target of 14,950 level by placing a stop below intraday low,” he said.