Nifty Analysis: Tech View: Nifty defends 14,200-support, but analysts see more weakness ahead
During the day, the Nifty bulls struggled at 14,500 level, even as they defended the crucial support of 14,200 well.
The face saving-act, however, did not impress analysts, who believe the index could soon breach the 14,200 level and trigger more weakness.
Sameet Chavan of Angel Broking said that the market is struggling at higher levels and Tuesday’s session was a good example.
“Tuesday’s high coincided around the resistance zone of 14,500-14,550. The way the index dropped towards 14,200 in the latter half suggests that things do not bode well for the bulls. Although we did manage to hold the key support level, the possibility of sliding below it has increased now. Below 14,200, Nifty may test 14,000-13,700 levels,” Chavan said.
Check out the candlestick formations in the latest trading sessions
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Aditya Agarwala of YES Securities said that a sustained trade below 14,200 in the coming trading sessions could drag the Nifty50 towards 14,100-14,070 levels.
Mazhar Mohammad of Chartviewindia.in said that the index has broken the critical support of its 100-day moving average, which had offered support to the index in the last couple of trading sessions.
ETMarkets.com“Unless Nifty50 swiftly registers a close above 14,300, the possibility of slipping towards 13,950 remains higher. In case the bulls manage a close above 14,300, a sideways move with slightly positive bias can be expected. Upsides for time being remain capped at 14,530 level. Intraday traders can go short below 14,200 level and look for a target of 13,990 level,” Mohammad said.
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