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NEW DELHI: Nifty50 on Tuesday made a small bearish candle on the daily chart, which looked like a 'Hanging Man', suggesting exhaustion of the ongoing positive momentum. Analysts said a move above the 15,800 level is a must for the index to keep the positive momentum alive, while they suggested the 15,680-15,600 zone as the immediate support range for the index.
Nifty has formed indecisive candles in the last four sessions. It traded in a narrow range but failed to make any meaningful gain on a closing basis, analysts said.
"It would be practical to suspect that Nifty50 may be in a distribution phase and a close below 15,600 level can trigger a sharp downswing with initial targets placed in the 15,459-375 zone. If the bulls push the index beyond 15,778 level, then strength may expand into the 15,850-929 zone," said Mazhar Mohammad of Chartviewindia.in.
The 50-pack closed Tuesday's session at 15,740, down 11.55 points or 0.07 per cent.
"The hourly momentum indicator has been showing loss of momentum in the past few sessions. The index seems to be taking a pit stop after a strong rally in the last three weeks. On Tuesday, it tested the rising trendline on the hourly chart and the 20-hourly moving average. The day's low of 15,680 becomes crucial support. If that is breached, Nifty50 can slide down to fill up the gap in the 15,597-15,611 zone," said Gaurav Ratnaparkhi of Sharekhan.
Ruchit Jain of Angel Broking said the index may find support around 15,670 and 15,600 levels. He sees resistance in the 15,770-15,800 range. "A move above 15,800 level will lead to the resumption of momentum in Nifty towards 16,000 level," Jain of Angel Broking said.
Nifty has formed indecisive candles in the last four sessions. It traded in a narrow range but failed to make any meaningful gain on a closing basis, analysts said.
"It would be practical to suspect that Nifty50 may be in a distribution phase and a close below 15,600 level can trigger a sharp downswing with initial targets placed in the 15,459-375 zone. If the bulls push the index beyond 15,778 level, then strength may expand into the 15,850-929 zone," said Mazhar Mohammad of Chartviewindia.in.
The 50-pack closed Tuesday's session at 15,740, down 11.55 points or 0.07 per cent.
"The hourly momentum indicator has been showing loss of momentum in the past few sessions. The index seems to be taking a pit stop after a strong rally in the last three weeks. On Tuesday, it tested the rising trendline on the hourly chart and the 20-hourly moving average. The day's low of 15,680 becomes crucial support. If that is breached, Nifty50 can slide down to fill up the gap in the 15,597-15,611 zone," said Gaurav Ratnaparkhi of Sharekhan.
Ruchit Jain of Angel Broking said the index may find support around 15,670 and 15,600 levels. He sees resistance in the 15,770-15,800 range. "A move above 15,800 level will lead to the resumption of momentum in Nifty towards 16,000 level," Jain of Angel Broking said.
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