Tech View: Nifty50 fails to pull off a trend reversal, forms bearish candle
For the day, the index fell 90.75 points, or 0.76 per cent, to 11,823.
NEW DELHI: Nifty50 on Friday failed to see any confirmation of the trend reversal after forming a Hammer-like candle on the previous day. Instead, the index ended up forming a bearish candle on both daily and weekly scales. This was also the third consecutive session when the index formed lower highs and lows, suggesting a bearish bias.
Weakness could prevail going ahead, with the index likely to see support at 11,765 level, while the upside will be tested around 11,930 level, said analysts.
For the day, the index fell 90.75 points, or 0.76 per cent, to 11,823.
“The index recorded a close at 11,823, below the required 11,830, suggesting the fall would accelerate. The near-term oscillators are in sell mode and the index is likely to slide towards 11,765 and subsequently to 11,500 levels, said Arun Kumar, Market Strategist at Reliance Securities.
The index has been consolidating in a broader trading range between 11,761 and 12,041 for 14 sessions now. The next leg of rally is unlikely unless the index clears the upper limit of this range, said Chandan Taparia of Motilal Oswal Securities.
“On Monday, the index may register a breakdown from the narrow range on the weekly charts, if it slips below 11,769 level. In such a scenario, a correction shall get accentuated further. If the bulls manage to defend this level, then the consolidation will continue with an initial target of 11,930,” said Mazhar Mohammad of Chartviewindia.in.
Weakness could prevail going ahead, with the index likely to see support at 11,765 level, while the upside will be tested around 11,930 level, said analysts.
For the day, the index fell 90.75 points, or 0.76 per cent, to 11,823.
“The index recorded a close at 11,823, below the required 11,830, suggesting the fall would accelerate. The near-term oscillators are in sell mode and the index is likely to slide towards 11,765 and subsequently to 11,500 levels, said Arun Kumar, Market Strategist at Reliance Securities.
The index has been consolidating in a broader trading range between 11,761 and 12,041 for 14 sessions now. The next leg of rally is unlikely unless the index clears the upper limit of this range, said Chandan Taparia of Motilal Oswal Securities.
“On Monday, the index may register a breakdown from the narrow range on the weekly charts, if it slips below 11,769 level. In such a scenario, a correction shall get accentuated further. If the bulls manage to defend this level, then the consolidation will continue with an initial target of 11,930,” said Mazhar Mohammad of Chartviewindia.in.