Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty has been witnessing a short term consolidation, within which it is oscillating with sharp swings in both the directions. A minor degree bounce in the last week fizzled out near the 50% retracement of the entire September decline as well as near the key daily moving averages. Thereon, the index started sliding down again.

On October 11, the index has breached the level of 17000 on a closing basis. Thus it is set to test the swing low, which is near 16750.

The Nifty is expected to attract buying support again near the support zone of 16800-16750. On the higher side, the zone of 17250-17300 kept the bounce in check for the last couple of sessions & can continue with its role of resistance in the short term.

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