Stock Market

Tech View: Nifty forms indecisive 'Spinning Top'; next key support at 10,900 level

   Download Android App    Share in      FullScreen   CheckVideos

NEW DELHI: NSE Nifty on Friday broke below the immediate support of 11,000 and formed an indecisive 'Spinning Top' on the daily chart.

The index is in the oversold zone and zone around 10,800-900 could offer some support to the index.

On the upside, the index should face resistance in the 11,100-11,200 range, said analysts. In terms of price pattern, Nifty has broken down from a multi-month Ending Diagonal pattern, which suggests the index is in a downtrend not only for the short term, but also for the medium term. "The pattern breakdown of such a scale has significantly bearish implication, which pegs the medium-term target at 10,000.

From the short term perspective, 10,637 and 10,482 will be the key targets to watch out for.

On the flip side, 11,100-11,200 will now act as a near term resistance zone," Gaurav Ratnaparkhi of Sharekhan. Amit Shah, Technical Research Analyst at Indiabulls Securities said the market looks weak even as the index is in the oversold territory. “The support at 10,900 level will be interesting to watch.

Only a close above 11,350 could initiate the process of recovery.

Till then, the index will continue to remain in weak territory.

A fresh positional shorts should be avoided as the index is quite oversold and near the important support zone,” Shah said. Jimeet Modi, Founder - CEO, SAMCO Securities said that after witnessing heavy selloff, the index is trading at the lower end of the rising channel, which has supported multiple selloffs in the past.

Strong support is seen at 10,800-850," he said.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21