Tech view: Nifty50 negates higher high formations, in for consolidation

NEW DELHI: The Nifty50 on Wednesday struggled hard to stay afloat, but late selling forced the index to end lower for the second straight session.

With this, the index has negated higher high formations for last six sessions. Technical signals are mixed, as only a few momentum indicators are in the sell mode. Analysts said further consolidation could be in the offing.

The index is expected to find support around the 10,300 level, while a close above the 10,400-410 levels is a must for any material upside. The index has so far failed to break the broader range in last seven sessions.

In the short term, support for the Nifty50 can be seen at 10,300, which is its 20-day moving average. This level has been providing some breathing space to the bulls, said Mustafa Nadeem, CEO at Epic Research.

“As far as resistance is concerned, until and unless the 10,400 level is not taken out, we will see continue to see selling pressure,” Nadeem said.

The Nifty50 ended the day at 10,361, down 9 points or 0.09 per cent.

He advised short-term traders to avoid long side bets below 10,340. On the other hand, a close above 10,410 level shall make the Nifty50 retest the 1,0490 level, Mohammad said.