NEW DELHI: Nifty50 tanked 2 per cent on Thursday, taking its losing streak into fourth straight session.
That said, the index staged an intraday rebound and closed above the opening level.
In the process, the index formed a bullish candle on the daily chart.Analysts said levels in the 7,800-8,000 zone may offer some support to the index.
The NSE barometer may face resistance around its recent swing low of 8,555, they said.For the day, the index fell 205 points, or 2.42 per cent, to 8,263.The index faces crucial resistance near the 8,550 mark.
Once we see a close above this level, there could be a relief rally.
Till then, it will be a sell on rise market.
Supports for the index stand in the 8,000-7,800 zone, said Rohit Singre, Senior Technical Analyst at LKP Securities.Nifty seems to be headed for consolidation, provided it sustains above the 7,832 mark for at least next couple of days, said Mazhar Mohammad, Chief Strategist Technical Research at Chartviewindia.in.The index has been trading far below key moving averages and the 14-day RSI at 14.34 suggests it is in the deep oversold territory.In case the index breaches 7,832, the slide can continue till 7,548.
If it sustains above 7,832 level, the ideal range for the consolidation can be in the 7,900-8,500 zone, Mohammad said.