INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The bulls turned nervous at higher level, as the Nifty50 ended Wednesday’s session with mild gains
The index made a Small Bearish Candle on the daily chart that resembled a three-candle 'Stalled' pattern, showing indecisiveness
A continuation of higher high, higher low formation, though, suggested support had shifted higher.
Nifty formed a new swing high at 10,893
level, but market breadth for the day was slightly negative
“Wednesday's pattern indicated a 'Stalled' type candlestick formation at the high point
Normally, such formations at swing highs or at the hurdles are not good signs for the bulls,” said Nagaraj Shetti of HDFC
Securities.
Aditya Agarwala of YES Securities said the index failed to cross the upper end of the wedge pattern placed at 10,880 decisively,
which led to minor profit booking
A failure to break out and close above this resistance can trigger corrections to 10,760 or 10,675 levels, he said.
For the day, the index
rose 13.85 points, or 0.13 per cent, to close at 10,856.
Mazhar Mohammad of Chartviewindia.in does not see imminent weakness, as all
short-term oscillators on the lower timeframe charts are in still buy mode
It looks prudent on the part of short-term traders to focus on individual stock-specific opportunities with a stop below 10,800 on a closing
basis, he said.
The absence of followup buying at higher level is clearly visible in the market, said Chandan Taparia of Motilal Oswal
The 10,870-10,900 range will remain a crucial hurdle to watch out for, said Rajesh Palviya of Axis Securities.
Hourly charts suggested a
negative bias.
"Towards the end of the day, the index rolled down and closed below the band and the trendline
On the way down, Nifty broke a rising trendline on the hourly chart
The chart revealed that a distribution is under way since the past couple of sessions
The hourly momentum indicator confirmed the same, as it showed negative divergence
The bearish view holds true as long as the index trades below the recent high of 10,929,” said Gaurav Ratnaparkhi, Senior Technical
