Tech View: Nifty forms Hammer on weekly scale, lacks follow-up buying

NEW DELHI: Nifty50 on Friday shaped an indecisive Doji candle on the each day chart. On the weekly scale, the index shaped a Hammer candle. Analysts stated the 14,700 degree could pose robust resistance for Nifty50 within the coming days. A fall beneath 14,250 degree on the index can set off a powerful correction, they stated.

Chandan Taparia of Motilal Oswal Securities stated a ‘Hammer’ on weekly scale is indicating that declines are being purchased into, however followup buying was lacking at larger ranges.

“Nifty needs to keep holding above the 14,500 level for a bounce towards 14,700 and 14850 levels. On the downside, supports for the index exist at 14,350 and 14,250 levels, respectively,” he stated.

For the day, Nifty closed at 14,617, up 36.40 factors or 0.25 per cent.

Mazhar Mohammad of Chartviewindia.in stated Friday’s promoting occurred from an intraday excessive of 14,697 after the index retraced 62 per cent of its final leg of fall from the highs of 14,984-248 ranges.

“This is clearly suggesting that Nifty is still caught up in a sideways phase and is in need of a breakout above 14,700 level to develop fresh impetus. As long as Nifty fails to sustain above the said bearish gap zone, the threat of revisiting the recent low at 14,250 level remains higher,” he stated.

Check out the candlestick formations within the newest buying and selling periods

Rohit Singre of

stated the index has a powerful resistance at 14,700 degree, which will likely be a right away hurdle within the coming week. “Supports are placed in the 14,500-14,400 zone. If Nifty50 manages to hold above the said levels, we may see positive move in the coming sessions,” Singre stated.