Tech View: Nifty50 forms bearish candle as bears gain upper hand

NEW DELHI: Nifty made a fresh all-time high above 13,200 level on Thursday, but could not hold on to the gains as the session progressed.

The index formed a bearish candle on the daily chart that resembled a ‘Bearish Belt Hold’ pattern as it saw selling from the word go, before recovering some ground at the end.

Such a formation, following a Dragonfly Doji pattern in the previous session, suggested that the bears were getting the upper hand.

The index closed at 13,133, below the key resistance at 13,145. It rose 20.15 points, or 0.15 per cent, for the day. “The listless sessions of the last several days appear to have triggered a ‘sell’ signal on the daily MACD chart, hinting at weakness in the ongoing upward momentum. Hence, the bulls may come under pressure next trading session, if Nifty fails to hold above 13,107 level. A close below this level can potentially drag Nifty towards the 12,790 mark,” said Mazhar Mohammad of Chartviewindia.in.

Check out the candlestick formations in the latest trading sessions

Mohammad said while the market momentum is positively biased, based on the weight of technical evidence, traders should remain neutral on the index.

Ashis Biswas, Head of Technical Research, at CapitalVia Global Research, said the 13,050-13,220 range is going to be crucial for the market in the short term. “The index needs to sustain above the 13,050 level. We advise traders to consider a breakout above 13,200 level as an opportunity to build fresh longs,” he said.


“We feel Nifty could fall to 13,050 level in the first half of Friday’s session and move back to 13,300 level in the second half the day. The strategy should be to buy on dips,” said Shrikant Chouhan of Kotak Securities.

Independent analyst Manish Shah said the index moved above its weekly pivot at 13,140 level for some time during the day, but could not close above it. “If Nifty50 moves above 13,170 level, expect a rally towards the 13,327-13,350 zone. Support for the index stands in the 12,990-12,995 zone,” he said.