Nifty ended in the red on May 23 amid mixed global cues as concerns over inflation, rate hikes and geopolitical tension persisted.
Nifty opened at 16,290.95 against the previous close of 16,266.15 and touched intraday high and low of 16,414.70 and 16,185.75, respectively.
The index finally closed 51 points, or 0.32 percent, lower at 16,214.70 with 25 stocks in the green and 25 in the red.
Among the sectoral indices, Nifty Metal cracked 8.14 percent while oil & gas, healthcare, realty and pharma indices fell more than 1 percent each. The Nifty Auto index rose 1.84 percent while the IT index climbed 1.01 percent.
After a firm start, the Nifty failed to hold on to its early upsurge and simply lost track to end marginally lower.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said technically, on intraday charts, the Nifty has formed a double top formation and on daily charts, it formed a 'Hammer' candlestick formation which is broadly negative.
"For day traders 16,200 would act as a crucial support level, and below the same, we could see a quick intraday correction till 16100-16050. On the flip side, a fresh uptrend is possible only after a 16,300 intraday breakout. On breaching the level, the index could move up to 16,400-16,475,” said Chouhan.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in pointed out that Nifty witnessed a selloff from the critical resistance point of 16,400 which resulted in a 'Shooting Star' kind of candle with a long upper shadow.
Hence, going forward, to regain strength this counter not only needs to sustain above 16,400 but also requires to clear a slew of resistance points present between 16,400 - 16,800 as supply points are present at every 100 points up move, said Mohammad.
On the other hand, Mohammad added if the Nifty slips below 16,207, the weakness may drag it down towards 16,000.
"A close above 16,400 can provide an opportunity for short term traders to capture 150 – 200 Nifty points. However, for the next session, traders are advised to remain neutral on the index by shifting focus to stock-specific opportunities," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.