Nifty outlook: Key levels to watch as index falls below 18,000 mark

“On monthly chart, there is strong divergence but on daily chart, Nifty is looking bearish. It has immediate support placed at 17,700 whereas strong support at 17,500. So, 17500 to 17,700 would be a good accumulation zone for positional investors. Banking, auto and capital goods sectors are expected bring trend reversal on 50-stock index. On upper side, it may go up to 18,200 once it breaches its current hurdle placed at 18,000,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Both benchmarks Nifty and Sensex are on course for their fourth straight session of declines, the longest such losing streak in nearly three months. They are also on track for their worst week in over six months since June 17.

“Nifty has slipped below its 50-DMA and psychological level of 18,000, which is not a good sign for the bulls. The 100-day moving average of 17,800 is now a key support level where we can expect a bounce back. However, the near term texture has become weak, where 18,200 is an immediate hurdle and 18,400 will be the next critical hurdle,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

On Nifty outlook, Anand James – Chief Market Strategist at Geojit Financial Services said, “While our projected target of 17,900 has continued to attract prices lower, positive divergences in oscillators are beginning to show up, reducing the odds of falls beyond the same. This contention is important as we had warned about the possibility of having to consider the possibilities of 16,800, should we get to the present levels. Expect reversal attempts once in the 18,000 vicinity, but inability to scale 18,250 on the bounce should confirm a downtrend aiming at 17,670 initially.” 

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.