Tech view: Nifty forms Hammer-like pattern; bulls trying to bounce back
, ETMarkets.com|
Updated: Nov 10, 2017, 05.49 PM IST
NEW DELHI: NSE barometer Nifty50 saw a sharp rebound in the last half-an-hour of trade to settle higher on Friday after remaining in the negative terrain for most of the session. Analysts said it might mean the bulls are trying to get a foothold in the market.
The index formed a Hammer-like pattern on the daily chart and now faces immediate resistance at the 10,378 level, while it will have support near the 10,270-40 range. Broadly, a close above 10,400 or a fall below 10,200 would be the trend-decider for next week, analysts said.
"A positive close after wild swings on both directions suggests the bulls are working hard to hammer out a short-term bottom. A positive close in the next session could generate a buy signal on the lower timeframe charts and ensure a sustainable rally for a few trading sessions," said Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory at Chartviewindia.in.
On Friday, the Nifty50 rose 12.80 points, or 0.12 per cent, to close at 10,321.
Mustafa Nadeem, CEO at Epic Research, said the index took support on the weekly chart at its crucial 20-day moving average. “In the short term, the index may consolidate sideways as the overall breadth of the underlying stocks is getting exhausted. The Nifty50 will have immediate support at 10,200 and 10,180 levels, which may act as an inflection point. On the upside, it has resistance at 10,400 and 10,410 levels,” Nadeem said.
He said a change in trend from sideways to bullish will be seen if the index closes above the 10,400 levels and sustains the momentum. A close below 10,300 will further open the gates for the bears take the index towards 10,200 and 10,180 levels, he said.
"Traders are advised to focus on select pockets of opportunities, which are delivering for the bulls irrespective market condition. It looks prudent to maintain a stop loss below the 10,240 level on a closing basis. For any pullback attempt, the target can be close to 10,442 level,” Mohammad said.
The index formed a Hammer-like pattern on the daily chart and now faces immediate resistance at the 10,378 level, while it will have support near the 10,270-40 range. Broadly, a close above 10,400 or a fall below 10,200 would be the trend-decider for next week, analysts said.
"A positive close after wild swings on both directions suggests the bulls are working hard to hammer out a short-term bottom. A positive close in the next session could generate a buy signal on the lower timeframe charts and ensure a sustainable rally for a few trading sessions," said Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory at Chartviewindia.in.
On Friday, the Nifty50 rose 12.80 points, or 0.12 per cent, to close at 10,321.
Mustafa Nadeem, CEO at Epic Research, said the index took support on the weekly chart at its crucial 20-day moving average. “In the short term, the index may consolidate sideways as the overall breadth of the underlying stocks is getting exhausted. The Nifty50 will have immediate support at 10,200 and 10,180 levels, which may act as an inflection point. On the upside, it has resistance at 10,400 and 10,410 levels,” Nadeem said.
He said a change in trend from sideways to bullish will be seen if the index closes above the 10,400 levels and sustains the momentum. A close below 10,300 will further open the gates for the bears take the index towards 10,200 and 10,180 levels, he said.
"Traders are advised to focus on select pockets of opportunities, which are delivering for the bulls irrespective market condition. It looks prudent to maintain a stop loss below the 10,240 level on a closing basis. For any pullback attempt, the target can be close to 10,442 level,” Mohammad said.
