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NEW DELHI: Nifty50 on Friday topped the 11,600 level and formed a bullish Pin Bar candle on the daily chart.
The lower wick of the candle was long, suggesting buying at lower level.
This was the fourth session when the index hit higher highs and lows.
Analysts see signs of caution, but said Friday’s session failed to give any clear sell signal.
Monday’s move is expected to be crucial for determining further course of action, said Gaurav Ratnaparkhi at Sharekhan.
Friday’s low of 11,570 becomes a key level to watch out for, he said.
For the day, the index rose 53.90 points, or 0.47 per cent, to 11,623.
“Friday’s price action can be read as a cautious sign, but as it is not backed by any sell signal on the lower timeframe charts, things still look advantageous for the bulls as we witnessed a strong bullish candle on the weekly chart,” said Mazhar Mohammad of Chartviewindia.in.
He said the oscillators sent out mixed signals – some of them even displayed a possible negative divergence, as they failed to make new swing highs along with price chart, which is a cause for concern.
If the index slips below the 11,570 level next session, it shall trigger a short-term selloff, he said.
Meanwhile, a bullish candle on the weekly scale suggested that the bulls are holding a tight grip on the market.
“The index has to hold the previous hurdle of 11,550 to extend the gains towards a lifetime high of 11,760.
Supports are seen at 11,450 and then 11,380 levels,” said Chandan Taparia of Motilal Oswal Securities.
