Nifty ended in the red for the second consecutive session on April 6 due to losses led by financial and IT heavyweights.
The benchmark index opened at 17,842.75 against the previous close of 17,957.40 and touched intraday high and low of 17,901 and 17,779.85 respectively.
At the end, the index was 150 points, or 0.83 percent, down at 17,807.65. Nifty Bank fell 1.14 percent while IT and financial services indices declined 1.63 percent and 1.59 percent respectively. Nifty Private Bank index fell 1.28 percent but the PSU bank index jumped 2 percent.
Analysts point out that the texture of the market has turned weak and a fresh pullback rally is possible only after the breakout above 17,900.
"For traders, 17,900 would act as an immediate hurdle, and below the same, a weak formation is likely to continue till 17,700-17,650. However, above 17,900, the index could move up to 17,820-17,865. The Nifty is having strong support between 17,650-17,700 and hence, contra traders can take a long bet near 17,650 with strict support stop loss at 17,620," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Nifty is still sustaining above the bullish gap zone of 17,791 and 17,703 levels. If it dips further in this zone then the index should attract some buying interest, said Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in.
Mohammad believes sustaining above 17,703, Nifty can eventually make an attempt to test recent highs present around 18,115. But for intraday traders, some resistance can be expected around 17,920 levels, he said.
"If Nifty fails to sustain above 17,700 on a closing basis then more weakness should be expected. For the time being, the current weakness is still an opportunity to create longs with a stop loss below 17,700," said Mohammad.
On the daily chart, the Nifty has been moving within a rising channel and it has fallen to the lower band of the said channel.
"Going forward, immediate recovery from the current level is expected. However, failure to hold above the lower band of the rising channel may trigger selling pressure in the market. On the lower end, support is visible at 17,750 below which the Nifty may drift down towards 17,450 over the short term," said Rupak De, Senior Technical Analyst at LKP Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.