INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 failed to hold the 11,000 level on Thursday, something it had been wrestling with for a few sessions now.
The
11,000-11,080 range has been proving too big a hurdle for the index to cross, even as technical charts signalled a breakout above the 10,929
level.
The index formed a small bearish candle on the daily chart and the upside look capped for now
The immediate hurdle on upside is at 10,050 level
Thursday was the seventh consecutive session when the Nifty50 moved in the 11,080-10,920 range, representing a short-term sideways trend
The index fell 23.35 points, or 0.21 per cent, for the day to close at 10,957.
“The Nifty50 has marked a day’s low of 10,935 around the
lower end of its consolidation zone
On the downside, the 10,935-10,920 range remains crucial to watch out for
Any sustainable move above 10,980 level will trigger further pullback towards 11,020 and 11,050 levels
Any violation of the 10,930 level will trigger weakness,” said Rajesh Palviya of Axis Securities.
The relative strength index (RSI) and
momentum indicator Stochastic are in the negative terrain, indicating a bearish bias ahead.
Chandan Taparia of Motilal Oswal Securities said
should the index hold above 10,950, a positive rangebound move could take it towards 11,000 level
A hold below 10,929 could confirm a short-term ‘Double Top’ pattern for a potential decline towards 10,888 level, Taparia said
The underlying short-term trend is rangebound in the 10,925-11,080 range, said Nagaraj Shetti of HDFC Securities.
Further weakness below
the lower range could lead the Nifty downward to its key lower support at 10,850-880 levels, which is the upper end of a larger
consolidation pattern on the weekly timeframe charts, said Shetti.
