Stock Market

Tech view: Nifty forms Inside Bar, but trade setup still favours bears

   Download Android App    Share in      FullScreen   CheckVideos

NEW DELHI: The Nifty50 settled just shy of the 10,700 mark on Tuesday.

The index formed an Inside Bar on the daily chart and closed above its 50-day moving average. Analysts believe one should not read too much into Tuesday’s gains and that a sustained breach above 10,755 is required for the bulls to be on top.

"A sustained trade above 10,755, which happens to be the 61.8 per cent Fibonacci retracement level, can extend the upward move to 10,830 and 10,875 levels.

However, a failure to cross this resistance can lead to choppy trading and drag Nifty lower to 10,650 and 10,560 levels,” said Aditya Agarwala, Technical Analyst, YES Securities.

For the day, the index rose 42.60 points, or 0.40 per cent, to 10,699.

The index recently made a swing high of 10,736, a crucial hurdle, on a closing basis. "On the flip side, the breakout level for the 'Inside bar' is at 10,604.

The overall setup suggests Tuesday's move was nothing but a minor bounce and the overall outlook continues to be in favour of the bears.

In terms of the wave structure, we are witnessing subdivisions on the way down.

By the time the subdivisions resolve themselves, the index can tumble to test the May low of 10,417 with potential to slide to lower levels,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan. Mazhar Mohammad of Chartviewindia.in believes technical oscillators on the lower time frame charts are slowly shaping up in a positive fashion, perhaps pointing towards stability and a short-term upward move over the next couple of sessions. He advised traders to selectively look for opportunities with a stop loss below 10,600 on a closing basis. As per the pattern of alternative candle formation, there is a possibility of weakness in Wednesday's session, said Nagaraj Shetti of HDFC Securities, adding that the underlying short-term trend has turned slightly positive. Chandan Taparia of Motilal Oswal Securities said the index needs to hold above 10,660 for an upward move towards 10,770 level.

On the downside, supports are seen at 10,600 and 10,550 levels, he said.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


Deprecated: Methods with the same name as their class will not be constructors in a future version of PHP; SpinRewriterAPI has a deprecated constructor in C:\xampp\htdocs\news1\components\com_content\views\article\tmpl\SpinRewriterAPI.php on line 9 Tech view: Nifty forms Inside Bar, but trade setup still favours bearsNEW DELHI: The Nifty50 settled just shy of the 10,700 mark on Tuesday. The index formed an Inside Bar on the daily chart and closed above its 50-day moving average. Analysts believe one should not read too much into Tuesday’s gains and that a sustained breach above 10,755 is required for the bulls to be on top. "A sustained trade above 10,755,Tech view: Nifty forms Inside Bar, however trade setup still favours bearsNEW DELHI: The Nifty50 settled simply shy of the 10,700 mark on Tuesday. The index formed an Inside Bar on the day-to-day chart and closed above its 50-day moving average. Analysts believe one ought to not read too much into Tuesday's gains and that a continual breach above 10,755 is needed for the bulls to be on top. A sustained trade above 10,755,
Tech view: Nifty forms Inside Bar, however trade setup still favours bears
NEW DELHI: The Nifty50 settled simply shy of the 10,700 mark on Tuesday. The index formed an Inside Bar on the day-to-day chart and closed above its 50-day moving average. Analysts believe one ought to not read too much into Tuesday's gains and that a continual breach above 10,755 is needed for the bulls to be on top. A sustained trade above 10,755,



Warning: mysqli::query(): Empty query in C:\xampp\htdocs\news1\components\com_content\views\article\tmpl\default.php on line 1372
21