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Updated on June 27, 2022 1:18 am

Tech View: Nifty50 takes out swing high, faces resistance ahead

Nifty50 on Tuesday surged over 2.5 per cent and took out its recent swing high. The index formed a large bullish candle on the daily chart. Analysts said the index could face stiff resistance around 17,900 levels and see immediate support at the 17,600 level.

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan, said the index crossed the swing high of 17,726 and is now approaching 78.6 per cent retracement of the entire recent decline i.e. 17,815, which is the immediate resistance.

“The index is likely to witness selling pressure near 17,815-17,900. However, the overall structure suggests that a sharp decline in the short term is unlikely. What we can expect is a short-term consolidation in the broad range of 17,200-18,000,” Ratnaparkhi said.

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For the day, the index closed at 17,759.30, up 446.40 points or 2.58 per cent.

Nagaraj Shetti, Technical Research Analyst,

Securities said Nifty50 seems to have reversed the recent downtrend sharply on the upside.

“Now, the bulls are ready to show a big bang upside breakout of the resistance of around 17,900 level by this weekend or next week. A decisive move above the 17,900 level could pull Nifty50 towards the next upside target of 18,300-18,400 in the next few weeks. Immediate support is at 17,600 level,” Shetti said.

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Kunal Shah, Senior Technical Analyst at , said the index witnessed a sharp move on the upside despite the negative global sentiment. The index surpassed the immediate hurdle of 38,500, which will now act as strong support on the downside. The index on the upside indicates targets of 41,000-41,500, where the earlier major sell-off of the index was seen.

“The index remains in a buy-on-dip mode as long as it holds the support of 38,500 on the downside,” he said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)


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