Tech View: Nifty50 forms 'Spinning Top', sustainability above 9,075 holds the key
NEW DELHI: Considering it was just a day ahead of March F&O expiry, a 44-point range for Nifty50 on Wednesday was unusual. The Nifty50 settled making a real green body for a second session in a row, but failed to instill much confidence. The index closed the day forming a pattern similar to ‘Spinning Top’ on the daily chart.
This candle is often regarded as a neutral pattern, which suggests indecisiveness among the bulls and the bears. That said, there were a few positives from the session. First, the index closed above its immediate resistance of 9,133 and second it logged the highest closing of the last eight trading sessions.
“It has been holding above its support trend line by connecting the lows of 8,713, 8,903 and 9,024 levels,” said Chandan Taparia, Derivatives & Technical Analyst at Motilal Oswal Securities.
The market analyst believes that Nifty50 needs to hold above 9,075 to extend its upmove towards its lifetime high of 9,218, whereas 9,075 and 9,020 may now emerge as good support level in the short term.
The index opened higher but could not gain much. From day’s high of 9153.15, it fell to a low of 9,109.80, before ending the day at 9,143.80, up 43 points, or 0.47 per cent.
“Nifty50 registered Spinning Top kind of indecisive formation as it signed off the day with meagre gains. Advance Decline Ratio on Wednesday should be a cause for concern. If the index registers a sporadic breakout, and gets past 9,178 level, it will facilitate new highs in next few trading sessions,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
Contrary to this, if it slips below 9,100 on Thursday, then the ongoing consolidation phase shall continue for some more time,” Mohammad said.
This candle is often regarded as a neutral pattern, which suggests indecisiveness among the bulls and the bears. That said, there were a few positives from the session. First, the index closed above its immediate resistance of 9,133 and second it logged the highest closing of the last eight trading sessions.
“It has been holding above its support trend line by connecting the lows of 8,713, 8,903 and 9,024 levels,” said Chandan Taparia, Derivatives & Technical Analyst at Motilal Oswal Securities.
The market analyst believes that Nifty50 needs to hold above 9,075 to extend its upmove towards its lifetime high of 9,218, whereas 9,075 and 9,020 may now emerge as good support level in the short term.
The index opened higher but could not gain much. From day’s high of 9153.15, it fell to a low of 9,109.80, before ending the day at 9,143.80, up 43 points, or 0.47 per cent.
“Nifty50 registered Spinning Top kind of indecisive formation as it signed off the day with meagre gains. Advance Decline Ratio on Wednesday should be a cause for concern. If the index registers a sporadic breakout, and gets past 9,178 level, it will facilitate new highs in next few trading sessions,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
Contrary to this, if it slips below 9,100 on Thursday, then the ongoing consolidation phase shall continue for some more time,” Mohammad said.
