Tech View: Nifty50 forms Bearish Belt Hold pattern; more profit booking likely
, ETMarkets.com|
Jan 16, 2018, 05.49 PM IST
NEW DELHI: The Nifty50 skidded on Tuesday but avoided falling below the 10,700 level at close. The index formed a Bearish Belt Hold pattern on the daily chart, which reflected the losses that the index witnessed through the session.
The index formed a 'Bearish Belt Hold' candle on the daily chart and fell near its supply trendline on the monthly chart. Profit booking could now be seen towards 10,650 and 10,600 levels, if the index sustains below 10,700, said Chandan Taparia of Motilal Oswal Securities.
On the upside, resistance could be seen at 10,750 and 10,786 levels, said Taparia. At close, the Nifty50 was down 41.10 points, or 0.38 per cent, at 10,700.
The only saving grace for the bulls in Tuesday's session was that it defended the immediate support at 10,690 on a closing basis, said Mazhar Mohammad of Chartviewindia.in.
"If the support of 10,680 is breached decisively in the next session, the Nifty50 should head towards the 10,600 level. As our twin momentum oscillators also generated sell signals, the Nifty50 should extend its corrective and consolidation process for a couple of more sessions. A signal for short-term trend reversal may come on the breach of the 10,590 level on a closing basis," he said.
Rajesh Palviya, Head Technical & Derivatives Analyst at Axis Securities said were the Nifty to violate its immediate resistance at 10,680, it may correct towards 10,650 and 10,620 levels.
"On the upside, the 10,730 level is likely to act as key resistance. Daily strength indicator RSI is in the positive territory, whereas momentum indicator Stochastic has turned negative, indicating downward momentum," he said.
The index formed a 'Bearish Belt Hold' candle on the daily chart and fell near its supply trendline on the monthly chart. Profit booking could now be seen towards 10,650 and 10,600 levels, if the index sustains below 10,700, said Chandan Taparia of Motilal Oswal Securities.
On the upside, resistance could be seen at 10,750 and 10,786 levels, said Taparia. At close, the Nifty50 was down 41.10 points, or 0.38 per cent, at 10,700.
The only saving grace for the bulls in Tuesday's session was that it defended the immediate support at 10,690 on a closing basis, said Mazhar Mohammad of Chartviewindia.in.
"If the support of 10,680 is breached decisively in the next session, the Nifty50 should head towards the 10,600 level. As our twin momentum oscillators also generated sell signals, the Nifty50 should extend its corrective and consolidation process for a couple of more sessions. A signal for short-term trend reversal may come on the breach of the 10,590 level on a closing basis," he said.
Rajesh Palviya, Head Technical & Derivatives Analyst at Axis Securities said were the Nifty to violate its immediate resistance at 10,680, it may correct towards 10,650 and 10,620 levels.
"On the upside, the 10,730 level is likely to act as key resistance. Daily strength indicator RSI is in the positive territory, whereas momentum indicator Stochastic has turned negative, indicating downward momentum," he said.
