INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Nifty50 on Friday formed a bullish candle on the daily chart with a slightly long lower wick, suggesting the selloff in intraday
On a weekly basis, the index formed a Hammer-like pattern
This formation, following an indecisive Doji in the previous week, suggested a loss of momentum
For now, some consolidation looks on the cards.
The index has been finding support from its 20-day moving average, whose value is placed at
This made analysts believe the 11,580-550 range should act as support to the BSE barometer next week.
It will open up the way towards the
swing high of 11,761, if the index manages to breach the 11,710 level on a closing basis, they said.
For the day, Nifty rose 46.75 points,
or 0.40 per cent, to 11,643
“The index has been consolidating in the 11,550-11,760 zone for last 11 sessions
It needs to hold and sustain the lower limit if it were to retest the lifetime high of 11,761,” said Chandan Taparia of Motilal Oswal
Securities
Mazhar Mohammad of Chartviewindia.in said the last two sessions of the week signalled some stability in the near term, which will
be confirmed if Nifty closes above 11,710.
“The index may then turn sideways with a positive bias as it retests the life-time high
The bulls needs to defend the 11,550 level to prevent damage,” he said.
Bollinger Bands on the hourly and daily timeframes are in the
contraction mode, suggesting that the ongoing consolidation will continue for some more time before the index heads for a directional move,
said Gaurav Ratnaparkhi of Sharekhan.
Nagaraj Shetti of HDFC Securities expects rangebound action going forward
He does not rule out a minor correction before the index sees a sharp breakout on the upside from the all-time high point of 11,761.
