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NEW DELHI: Friday was the second consecutive day when the bulls bounced back after losing ground in morning trade.
This time, the index came close to the 10,750 level before erasing the losses of entire day to settle in the black, suggesting that the bulls were not in a mood to give in easily.
For the day, the index ended up rising 9.65 points, or 0.09 per cent, to 10,817.
On the weekly timeframe chart, the Nifty formed a small-body positive candle with a minor upper shadow.
This pattern indicated rangebound movement in the market, said Nagaraj Shetti of HDFC Securities.
“A low of 10,755 could now be considered as a new higher bottom of the sequence.
After forming a lower shadow in last three weekly candles, the Nifty50 has formed a minor upper shadow, which is signalling the presence of a strong resistance at its high,” Shetti said.
Vikas Jain of Reliance Securities says the Nifty50 has withheld the support near the 10,750 level.
He continued to be positive on the market as long as Nifty sustains above the 10,700 level.
The index has been making higher highs and higher lows for last four weeks and a hold above 10,750 level would be important, if Nifty has to move higher, said Chandan Taparia of Motilal Oswal Securities.
During the week, trading took place in a 138-point narrow range, leaving a dominant upper shadow.
It should be is a cause for concern, said Mazhar Mohammad of Chartviewindia.in.
"Unless the index closes above 10,930, the bulls will not gain an upper hand.
A breakout is needed for them to reach safe shores.
A close below 10,755 shall re-establish the supremacy of the bears.
Traders are advised to remain cautious,” Mohammad said.
