INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The Nifty50 consolidated above the 11,550 level to make a fresh all-time closing high on Tuesday
The index ended up a tad below its opening level, forming what resembled a Hanging Man pattern on the daily chart
This pattern suggests the recent strong momentum in the Nifty50 might be getting over after gaining for three sessions
Analysts noted a ‘Hanging Man’ pattern sends only mild warning of a possible top reversal
The near-term trend is still positive, but there is a possibility of a downward correction from near the 11,600 level in the coming
sessions, said Nagaraj Shetti of HDFC Securities
For the day, the index rose 19.15 points, or 0.17 per cent, to close at 11,570.
Chandan Taparia of Motilal Oswal Securities said the index
has been respecting its rising support trend line and it may need to extend its upward move towards 11,635 level after a hold above 11,500
The medium-term support level is shifting higher to 11,400 level, he said.
Rajesh Palviya of Axis Securities sees the 11,550 level as an
immediate support for the index
If the index sustains below this level, profit booking may drag the index towards 11,530-11,500 zone, he said.
Mazhar Mohammad of
Chartviewindia.in advised traders to book profit by making use of rallies towards 11,600 level and remain on sidelines till correction
unfolds.
“In case the upswing continues, the current Nifty run shall extend up to 11,640 level
However, based on trend studies across time frames, we believe the current leg of upswing shall end around 11,600 level, thereby triggering
a short-term correction,” he said.
On the daily chart, the Nifty50 has seen a breakout from a Flag pattern, said Mustafa Nadeem of Epic
Research, who sees the 11,480-11,460 zone as a point of inflection, below which the index may see consolidation
