INSUBCONTINENT EXCLUSIVE:
The bears took charge of Dalal Street on Friday and pushed down the equity benchmarks after a US strike in Baghdad killed Qassem Soleimani,
commander of Iran’s elite Quds force and architect of its growing military influence in West Asia, flaring tensions in the oil-producing
belt.
Before closing 55 points, or 0.45 per cent, down at 12,226, Nifty shuttled between a high and low of 12,265 and 12,191,
respectively.
In the process, the index formed a bearish candle on the daily chart
Overall, the index kicked off the session in the red following tensions in West Asia
Thereafter, it remained in the downward trajectory throughout the day as sporadic recovery attempts didn't help much.
“No specific
formation occurred on the daily chart
It was just a black body candle
The loss of momentum was evident in the previous session as indicated by the bearish divergence on the RSI,” said Milan Vaishnav, CMT,
MSTA, Consulting Technical Analyst, Gemstone Equity Research - Advisory Services.
Nagaraj Shetti, Technical Research Analyst at HDFC
Securities, said Friday's candle pattern was placed beside Thursday's long bull candle
"Technically, this pattern indicates a rangebound movement ahead for Nifty," he said.
Analysts believe Nifty index will remain in a broad
range next week with limited and capped upsides.
Mazhar Mohammad, Chief Strategist – Technical Research - Trading Advisory, Chartview
India, said if Nifty fails to sustain above 12,191 level on a closing basis next session, then it will set the tone for a correction with an
initial target placed at 12,070 level
On the upside, Nifty may continue to struggle till it breaks above the 12,293 level
On such a breakout, the rally can get extended up to 12,400 level.
Bank Nifty witnessed profit booking and settled 1 per cent down at
32,069.
Amit Shah, Technical Research Analyst, Indiabulls Ventures, said Bank Nifty's key near-term support is at 31,900
"A breach below this support would weaken the near-term upward momentum and trigger profit taking
The 32,500-32,600 zone has acted as a key resistance for the index and triggered profit booking around those levels."