Tech View: Nifty forms 'Dark Cloud Cover'; 10,630 level key
, ETMarkets.com|
Updated: Feb 27, 2018, 05.54 PM IST
NEW DELHI: Nifty50 on Tuesday faced resistance at around 10,630 level before closing the day just above the 10,550-mark. On the daily chart, the index formed a bearish candle that resembles 'Dark Cloud Cover' formation. The momentum though is unlikely to reverse as yet.
Vaishali Parekh of Prabhudas Lilladher sees no signs of weakness, with a broad trading range of 10,300-10,630 for Nifty50. "Unless it breaks the range on either side, we see this sideways consolidation move to continue," she said.
On Tuesday, Nifty50 fell 28.30 points, or 0.27 per cent, to settle at 10,554.30. The index hit a high of 10,631.65 during the session.
Chandan Taparia of Motilal Oswal Securities noted that the index respected its 38.20 per cent retracement of the entire down leg from 11,171 to 10,276 level. "It has to surpass its immediate hurdle of 10,620-10,630 zones to extend its bounce towards 10,720. Else, some profit booking could be seen towards immediate support of 10,500," Taparia said.
A break above 10,637 can push the index higher towards 10,725 i.e. 50 per cent retracement level of its previous fall, said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan, who added that a break below 10,276 can drag the index lower towards 10,070 level.
Rajesh Palviya of Axis Securities too sees 50-day SMA resistance at 10,623 level a crucial resistance in the near term. He noted that 10,630 level has proved a multiple supply zone in the last four weeks. "The index managed to form higher High-Low formation, indicating a positive bias," he said.
Meanwhile, even as the index may see a relief rally on breach of the 10,620-40 range, for Sameet Chavan of Angel Broking it does not change the broader negative picture. "For a time being, traders should focus on the crucial levels and should position themselves accordingly," the expert said.
Nifty50 was still trading above Monday's gap zone of 10,520-10,499 levels and was yet to decisively breach 50-day exponential moving average on the downside, said Mazhar Mohammad of Chartviewindia.in. This expert too sees a rally above the 10,630 level.
Vaishali Parekh of Prabhudas Lilladher sees no signs of weakness, with a broad trading range of 10,300-10,630 for Nifty50. "Unless it breaks the range on either side, we see this sideways consolidation move to continue," she said.
On Tuesday, Nifty50 fell 28.30 points, or 0.27 per cent, to settle at 10,554.30. The index hit a high of 10,631.65 during the session.
Chandan Taparia of Motilal Oswal Securities noted that the index respected its 38.20 per cent retracement of the entire down leg from 11,171 to 10,276 level. "It has to surpass its immediate hurdle of 10,620-10,630 zones to extend its bounce towards 10,720. Else, some profit booking could be seen towards immediate support of 10,500," Taparia said.
A break above 10,637 can push the index higher towards 10,725 i.e. 50 per cent retracement level of its previous fall, said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan, who added that a break below 10,276 can drag the index lower towards 10,070 level.
Rajesh Palviya of Axis Securities too sees 50-day SMA resistance at 10,623 level a crucial resistance in the near term. He noted that 10,630 level has proved a multiple supply zone in the last four weeks. "The index managed to form higher High-Low formation, indicating a positive bias," he said.
Meanwhile, even as the index may see a relief rally on breach of the 10,620-40 range, for Sameet Chavan of Angel Broking it does not change the broader negative picture. "For a time being, traders should focus on the crucial levels and should position themselves accordingly," the expert said.
Nifty50 was still trading above Monday's gap zone of 10,520-10,499 levels and was yet to decisively breach 50-day exponential moving average on the downside, said Mazhar Mohammad of Chartviewindia.in. This expert too sees a rally above the 10,630 level.
