During the day, the index breached the 10-day exponential moving average (EMA) for the first time since December.
Besides, two back-to-back significant red candles on the daily chart indicate weakness that could extend further in the near future, said Rupak De, senior technical analyst at LKP Securities.
“On the lower end, support for Nifty50 is visible at 17,880, below which the index may dip towards 17,750. The resistance for the index is pegged at 18,050 and 18,200,” De said.
For the day, the index closed at 17,938.40, down 174.65 points or 0.96 per cent.
Shrikant Chouhan of Kotak Securities said Nifty50 breaking below the level of 18,000 on a closing basis is a negative for the market.
“The index is likely to consolidate within the range of 17,820 to 18,050. For the bulls, 17,960 would be the key level to watch out for. Above the same, the index could recover up to 18,000-18,050 levels. On the flip side, a dismissal of 17,900 would trigger one a leg of correction up to 17,850-17,820 level,” Chouhan said.
Mazhar Mohammad of Chartviewindia.in said until Nifty50 closes above 18,130, the market trajectory may stay weak, with the initial targets around the 50-day EMA, whose value is placed near 17,600 level.
“If Nifty50 defends 17,184, sideways move can be expected. Only a close above 18,130 can be considered as an initial sign of strength,” he said.