Tech View: Nifty now in do-or-die zone, sending out bearish signals

NEW DELHI: Nifty could not capitalise on a gap-up start on Tuesday, and closed below the 11,800 level. Analysts said the index put up a strong fight to defend its critical support in the 11,783-740 range despite testing the range twice in the last one-and-half hours of trade.

Nifty must respect this range in the coming sessions in order to avoid a sharp fall. On the upside, it has resistance in the 11,900-11,920 zone.

“Multiple supports are emerging on the downside at every 50 points. In case Nifty fails to hold the 11,749 level, it can head to test its 200-day simple moving average support placed at 11,684 level. On the upside, a mild strength can be expected if it sees a close above 11,900,” said Mazhar Mohammad of Chartviewindia.in.


For the day, the index closed at 11,797.90, down 31.50 points or 0.27 per cent. The NSE barometer formed a small bearish candle on the daily chart.

In terms of the Fibonacci retracement, the index is approaching the 78.6 per cent retracement of the post-Budget rise, which stood at 11,750.

“Thus the 11,783-11,749 range becomes the immediate support zone to watch out for. Once this support zone cracks, the index can swiftly roll down to test the low of 11,614. The near-term resistance is placed at 11,900-11,920,” said Gaurav Ratnaparkhi of Sharekhan.

Rohit Singre, Senior Technical Analyst at LKP Securities expects a relief rally if the index closes above 11,900.