Tech view: Nifty forms Shooting Star pattern; investors indecisive
, ETMarkets.com|
Updated: Sep 29, 2017, 05.10 PM IST
NEW DELHI: All is well that ends well.
After reclaiming the 9,850 mark, the index erased most of the gains in late trade to settle below the 9,800 level on the first day of October F&O series. It suggests that the bulls had little confidence at higher levels ahead of the long weekend. Besides, profit taking ahead of a long weekend also had its effect.
The index registered a small bearish candle on the daily chart that resembled a 'Shooting Star' formation. Experts said unless the index breaks above the 9,921 level on a sustainable basis, downward pressure will persist.
At close, the index was up 19.65 points, or 0.20 per cent at 9,788.60.
"The Nifty50 formed a Shooting Star kind of pattern after retracing 62 per cent of its fall from 9,921 to 9,685 level. This behaviour is more or less in line with the common market psychology, as participants will naturally prefer to hold on to their positions, especially in uncertain times, when an intermediate top is in place,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in
Mohammad said investors either utilised Friday's rally to exit positions or created fresh shorts, adding that Wednesday’s index top of 9,921 is going to cap the upsides for the time being, as this was the first pullback attempt, which got sold off heavily.
Chandan Taparia of Motilal Oswal Securities said the index has to continue to hold above the 9,777 level, if it were to see a bounce towards 9,850 and 9,928 levels. The index will find immediate support at 9,720 and 9,685 levels, he said.
After reclaiming the 9,850 mark, the index erased most of the gains in late trade to settle below the 9,800 level on the first day of October F&O series. It suggests that the bulls had little confidence at higher levels ahead of the long weekend. Besides, profit taking ahead of a long weekend also had its effect.
The index registered a small bearish candle on the daily chart that resembled a 'Shooting Star' formation. Experts said unless the index breaks above the 9,921 level on a sustainable basis, downward pressure will persist.
At close, the index was up 19.65 points, or 0.20 per cent at 9,788.60.
"The Nifty50 formed a Shooting Star kind of pattern after retracing 62 per cent of its fall from 9,921 to 9,685 level. This behaviour is more or less in line with the common market psychology, as participants will naturally prefer to hold on to their positions, especially in uncertain times, when an intermediate top is in place,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in
Mohammad said investors either utilised Friday's rally to exit positions or created fresh shorts, adding that Wednesday’s index top of 9,921 is going to cap the upsides for the time being, as this was the first pullback attempt, which got sold off heavily.
Chandan Taparia of Motilal Oswal Securities said the index has to continue to hold above the 9,777 level, if it were to see a bounce towards 9,850 and 9,928 levels. The index will find immediate support at 9,720 and 9,685 levels, he said.
