NEW DELHI: Nifty50 advanced on Friday but formed indecisive candles on daily and weekly charts. While the index formed a Doji pattern on the daily chart, opening and closing almost at the same levels, it made a Spinning Top candle on the weekly scale, suggesting that it continued to struggle at higher levels.

In the coming week, the 10,550 level will be a key hurdle to watch out for.

“Nifty seems to be facing a major hurdle at 10,550, as this level coincides with the 61.8 per cent Fibonacci retracement of the fall from top to the recent bottom. Though the trend is up now, we expect the upside to remain limited going ahead and the index to test the lower end of the channel drawn from the bottom, which comes at 9,700,” said Jimeet Modi, Founder & CEO at SAMCO Securities.

For the day, the index closed at 10,383, up 94.10 points or 0.91 per cent.

Nifty behaviour in the last two sessions suggested that it might be chalking out a new trading range in the 10,553–10,194 range, said Mazhar Mohammad of Chartviewindia.in.

“As long as the index remains confined to the said consolidation zone, it would stay choppy without proper direction. A breakout above 10,553 level will open up a new target for Nifty50 towards the 10,900 level,” Mohammad said.

Check out the candlestick formations in the latest trading sessions

Chandan Taparia of Motilal Oswal Securities said the daily and weekly charts indicated consolidative market action, with the ‘buy on decline’ strategy playing out.

“The index has seen the highest weekly close in 14 weeks and supports have gradually shifted higher, which has an overall bullish implication. Now, the index has to hold above 10,333 level to witness an up-move towards the recent swing high of 10,555 as support shifts to 10,300 and 10,250 levels,” he said.