Tech View: Nifty50 forms bearish candle; may head towards 11,550
Going forward, Nifty50 may trade in a broad range between 11,550 and 11,761 levels.
NEW DELHI: Nifty50 on Thursday faced resistance near the 11,800 mark, as it wiped off morning gains to settle April derivatives series at 11,641. The NSE barometer formed a bearish candle on the daily chart.
Going forward, it may trade in a broad range between 11,550 and 11,761 levels.
“Nifty50 index reversed around its resistance at 11,790. The near-term indicators are in the ‘sell’ mode. We expect the index to find support around 11,549,” said Arun Kumar, Market Strategist at Reliance Securities.
The index fell 84.35 points, or 0.72 per cent, for the day. During the day, it went on to hit the upper Bollinger Band as well as the 78.6 per cent retracement mark of the recent fall.
“The parameters, however, acted as stiff barriers. The overall structure shows the index can take the form of a triangular pattern, which means consolidation can continue further before the index heads higher,” said Gaurav Ratnaparkhi of Sharekhan
If this selloff was just because of expiry-induced jitters, the market should ideally stabilise around the 11,600 mark, said Mazhar Mohammad of Chartviewindia.in
“The confidence of the bulls will not be restored unless Nifty sees a close above 11,800. Traders would do well to wait for some stability in the indices,” he said.
Going forward, it may trade in a broad range between 11,550 and 11,761 levels.
“Nifty50 index reversed around its resistance at 11,790. The near-term indicators are in the ‘sell’ mode. We expect the index to find support around 11,549,” said Arun Kumar, Market Strategist at Reliance Securities.
The index fell 84.35 points, or 0.72 per cent, for the day. During the day, it went on to hit the upper Bollinger Band as well as the 78.6 per cent retracement mark of the recent fall.
“The parameters, however, acted as stiff barriers. The overall structure shows the index can take the form of a triangular pattern, which means consolidation can continue further before the index heads higher,” said Gaurav Ratnaparkhi of Sharekhan
If this selloff was just because of expiry-induced jitters, the market should ideally stabilise around the 11,600 mark, said Mazhar Mohammad of Chartviewindia.in
“The confidence of the bulls will not be restored unless Nifty sees a close above 11,800. Traders would do well to wait for some stability in the indices,” he said.
