Nifty ended in the green for the second consecutive day, supported by improved global cues as reports of talks between Russia and Ukraine lifted sentiment.
Nifty opened at 17,297.20 against the previous close of 17,222 and touched intraday high and low of 17,343.65 and 17,235.70, respectively.
At the end, the Nifty was 103 points, or 0.60 percent, up at 17,325.30. Albeit late recovery helped the index, it depicted an indecisive formation that resembles a Hanging Man, Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in, observed.
The Hanging Man pattern indicates a bearish reversal of the trend with selling pressure emerging at higher levels. This pattern indicates sellers are entering the markets and the bulls are getting tired as the prices start showing weak close.
"The trading range for the day remained extremely narrow with 108 points. Hence, in the next trading session, it remains critical for the index to sustain above 17,235 as a breach of this can attract intraday selling pressure," said Mohammad.
"If bulls manage to push the index beyond 17,350 then the strength may extend towards 17,450. However, a sustainable up move should not be expected unless Nifty clears the hurdle of 17,450 on a closing basis. As the market is heading for a monthly expiry, it may remain volatile for the next two trading sessions. Therefore, it looks prudent to remain neutral on the index," he added.
As per Rupak De, Senior Technical Analyst at LKP Securities, 17,330 may continue to act as the point of polarity. A decisive move beyond 17,330 may induce a strong rally in the market. On the lower end, support is visible at 17,200.
As long as the Nifty is trading above the 50-day simple moving average (SMA) the short-term texture is positive. For the trend following traders, the support has shifted to 17,250 from 17,100, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Above the level of 17,250, the index could touch the level of 17,450 and 17,500. However, a quick intraday correction up to 17,200-17,140 is not ruled out if the index trades below 17,250, Chouhan added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.