The market remained in a tight trading range on Tuesday (June 8). While it failed to surpass the heaviest level of 15,800, the index managed to survive above the level of 15,670, which was the previous day’s lowest level. Such a type of formation brings major volatility to the market, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
On Tuesday, defensives like technology, pharma and FMCG offered significant support, however, finance-related stocks closed in the negative territory. On Wednesday, below the level of 15670, Nifty would drop to 15620 or 15580 levels, said Chouhan. On the higher side, Nifty would rally if it manages to surpass 15,800 levels. The index faces resistance at 15800, 15880 and 15950 levels. The focus should be on pharmaceuticals and technology companies.
Technically, the Index has been trading in Higher Highs and Higher Lower formation, which suggests a continued upside move in the index, said Sumeet Bagadia, Executive Director, Choice Broking. Moreover, the index has taken support from 21-EHMA and closed above the same, which suggests a positive move for upcoming days. A momentum indicator MACD is also trading with a positive crossover as well as above the zero lines. At present, the Nifty seems to have resistance at around 15,850 levels while immediate support shifted up to 15,650 levels, he added.