INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50
on Thursday tested the sub-10,800 level in intraday trade, only to settle above the psychological level by close.The
index, which had been failing to breach its key resistance levels, negated a higher high and higher low formation and ended up forming a
small bearish candle on the daily chart
The candle had no upper wick, suggesting the selling pressure that the index witnessed throughout the trading session.
But analysts see no
major sign of bearishness.
“Though Nifty showed weakness from the highs in the past couple of sessions, the downside momentum has not
The emergence of buying interest from the lows could encourage the bulls to put up some defence
Immediate supports to be watched in the short term are at 10,750-60 levels, as per the concept of change in polarity,” said Nagaraj Shetti
of HDFC Securities.
A sustained trade above 10,880 with healthy volumes can help the index resume the uptrend and go to 11,100-11,280
levels, said Aditya Agarwala, Technical Analyst, YES Securities.
For the day, the index fell 48.65 points, or 0.45 per cent, to close at
10,808.
Momentum indicator Stochastic turned downward along with a negative crossover from the overbought zone, indicating possible profit
booking around the resistance zone, said Rajesh Palviya, Head of Technical Derivatives Analyst, Axis Securities
Any follow-through buying in the next session may reinstate the bullish sentiment once again, whereas a close below 10,767 next session
shall confirm the bearish formation, paving the way for a bigger correction, said Mazhar Mohammad of Chartviewindia.in.
On the weekly scale,
the index has formed a small-bodied candle with bigger higher shadows, said Chandan Taparia of Motilal Oswal Securities
It has to hold above 10,770 to extend its move towards 10,888, the expert said.
