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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.
