INSUBCONTINENT EXCLUSIVE:
NEW DELHI: NSE Nifty on Friday broke below the immediate support of 11,000 and formed an indecisive 'Spinning Top' on the daily chart
The index is in the oversold zone and zone around 10,800-900 could offer some support to the index
On the upside, the index should face resistance in the 11,100-11,200 range, said analysts.
In terms of price pattern, Nifty has broken down
from a multi-month Ending Diagonal pattern, which suggests the index is in a downtrend not only for the short term, but also for the medium
term.
"The pattern breakdown of such a scale has significantly bearish implication, which pegs the medium-term target at 10,000
From the short term perspective, 10,637 and 10,482 will be the key targets to watch out for
On the flip side, 11,100-11,200 will now act as a near term resistance zone," Gaurav Ratnaparkhi of Sharekhan.
Amit Shah, Technical Research
Analyst at Indiabulls Securities said the market looks weak even as the index is in the oversold territory.
“The support at 10,900 level
will be interesting to watch
Only a close above 11,350 could initiate the process of recovery
Till then, the index will continue to remain in weak territory
A fresh positional shorts should be avoided as the index is quite oversold and near the important support zone,” Shah said.
Jimeet Modi,
Founder - CEO, SAMCO Securities said that after witnessing heavy selloff, the index is trading at the lower end of the rising channel, which
has supported multiple selloffs in the past
Strong support is seen at 10,800-850," he said.