Tech View: Nifty50 fails to hold 100-day average, likely to slip below 10,000 level
, ETMarkets.com|
Updated: Dec 06, 2017, 07.26 PM IST
NEW DELHI: Nifty50 on Wednesday fell below its 100-day moving average and registered lower-top lower bottom formation for a sixth trading session. The index missed out on a chance of trend reversal after making a 'Doji' pattern in the previous session.
On the daily chart, the index ended up making a bearish candle for a seventh straight session, opening up doors for sub-10,000 levels.
During the session, the index respected the 10,030 level. The 50-pack index needs to steer clear of the 10,030-50 range to avoid a sharp correction.
"The index closed below its important 100-day SMA of 10,071 on a closing basis, which indicates bearish sentiment. A minor pullback action is likely to face resistance around 10,120-10,130 levels. However below 10,030 level, Nifty may drift towards 10,000-9,970 levels in the near term," Rajesh Palviya, Head – Technical & Derivatives Analyst at Axis Securities said.
At close, Nifty50 was at 10,044.10, down 0.73 per cent or 74 points. The index hit a low of 10,033 intraday which was the lowest point the index touched since October 12.
"The crucial support of 10,030 is still intact. As long as this support doesn’t get breached on a closing basis, a window of opportunity remains open for bulls to script a relief rally. A confirmation in that regard shall come if the Nifty50 closes above 10,050 in the immediate trading session," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
Chandan Taparia of Motilal Oswal Securities is not that optimistic as the expert believes that the index will continue to see weakness as long as it trades below 10,094 zones. Nifty50 may extend its fall towards the next support of 10,000-9,980, while upside hurdles are seen at 10,118 and 10,150, the expert said.
On the daily chart, the index ended up making a bearish candle for a seventh straight session, opening up doors for sub-10,000 levels.
During the session, the index respected the 10,030 level. The 50-pack index needs to steer clear of the 10,030-50 range to avoid a sharp correction.
"The index closed below its important 100-day SMA of 10,071 on a closing basis, which indicates bearish sentiment. A minor pullback action is likely to face resistance around 10,120-10,130 levels. However below 10,030 level, Nifty may drift towards 10,000-9,970 levels in the near term," Rajesh Palviya, Head – Technical & Derivatives Analyst at Axis Securities said.
At close, Nifty50 was at 10,044.10, down 0.73 per cent or 74 points. The index hit a low of 10,033 intraday which was the lowest point the index touched since October 12.
"The crucial support of 10,030 is still intact. As long as this support doesn’t get breached on a closing basis, a window of opportunity remains open for bulls to script a relief rally. A confirmation in that regard shall come if the Nifty50 closes above 10,050 in the immediate trading session," said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
Chandan Taparia of Motilal Oswal Securities is not that optimistic as the expert believes that the index will continue to see weakness as long as it trades below 10,094 zones. Nifty50 may extend its fall towards the next support of 10,000-9,980, while upside hurdles are seen at 10,118 and 10,150, the expert said.
