NEW DELHI: Nifty tumbled for the fourth straight session on Wednesday to settle below its 100-day moving average. That said, the index managed to defend the corrective swing low 11,461 which it had hit on Tuesday. Analysts said the index could still bounce back, as long as it stays above the said level.
For the day, the index fell 57 points, or 0.49 per cent, to settle at 11,498. It formed a small bearish candle on the daily chart.
Nifty50 appears to be in consolidation mode and, hence, one can remain hopeful of a pullback as long as it defends 11,460 level on a closing basis, said Mazhar Mohammad of Chartviewindia.in.
Gaurav Bissa of LKP Securities said the index not breaching Tuesdays low implies that the 11,420-11,450 zone should act as immediate support. A strong resistance, he said, is at 11,600.
“Nifty is forming Bullish Harmonic Shark pattern on the 15-minute chart, with price at 11,445, which can create opportunity for an intraday bounce, once it is triggered,” Bissa said.