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NEW DELHI: The Nifty50 index on Thursday briefly entered the positive terrain and was a tad away from the 11,450 level in intraday trade, but it slipped from there.
The index then came off sharply to settle near the day’s low in a session mostly dominated by the bears.
The index ended up forming a small bearish candle on the daily chart and looked headed for the 11,366-11,333 range on the downside.
The 11,450 level may continue to act as immediate hurdle in the near future.
During the day, the 50-pack failed to surpass previous day’s high of 11,450.
“It is facing selling pressure at highs, even as it continued to respect its rising support trend line by connecting the recent swing lows of 10,557, 10,630, 10,946 and 11,340 levels,” said Chandan Taparia of Motilal Oswal Securities.
If Nifty fails to hold in the 11,350-11,333 range, selling pressure may intensify towards the 11,300 level.
The immediate hurdle is seen at 11,450 level, Taparia said.
For the day, the index fell 50.05 points, or 0.44 per cent, to close at 11,385.
Thursday's candle resembled an Inverted Hammer formation, but it has no special significance.
“With Thursday’s close, the Nifty50 marginally breached the lower boundary of 33-day-old well-defined ascending channel with multiple touch points in which it was moving.
If the index consistently trades below 11,366 in next session at least for one hour, then selling pressure shall accentuate,” said Mazhar Mohammad of Chartviewindia.in.
Nagaraj Shetti of HDFC securities see rangebound trading ahead.
There is also a possibility of the Nifty seeing rangebound trade between 11,450 and 11,350 levels in next two sessions, he said.
Hourly charts also signalled consolidation ahead.
On the hourly chart, the index has been oscillating around its crucial hourly moving averages for last few sessions.
It also revealed that its fall from the recent high of 11,495 lacks an impulse structure.
This means that the fall is unlikely to turn out to be a deep one.
A higher degree structure shows this is a Fourth Wave consolidation, which is typically a sideways one.
The consolidation is likely to continue before the index kicks off the next leg of rally, said Gaurav Ratnaparkhi at Sharekhan.
