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NEW DELHI: The Nifty50 edged higher on Thursday and ended up forming a Hanging Man candle on the daily chart, suggesting lack of dem and at higher levels.
Analysts noted that the positive sequential movement of higher top and higher bottom formation was intact on the daily timeframe chart.
The momentum remains positive and investors may keenly track the key support range at 11,550-40, as a fall below this range may trigger selling.
For the day, the index rose 11.85 points, or 0.10 per cent, to close at 11,582.
The index is in the process of forming a new higher top of the sequence, said Nagaraj Shetti of HDFC Securities.
The higher top needs to be confirmed, he said, adding that there is a possibility of minor weakness form the highs and investors should look at the immediate support of 11,540, which may confirm further weakness in the market.
Rajesh Palviya of Axis Securities believes the index needs to rise above 11,600 on a sustainable basis for any strong upside.
"On the downside, the 11,550 level will act as intraday support and any violation of this level will trigger profit booking towards 11,520 and 11,500 levels.
In the short to medium term, the bias would remain positive.
Hence any correction towards the support zone will remain a buying opportunity,” he said.
Though the momentum appears to be fading slowly, sell signals are yet to emerge on the oscillator front, said Mazhar Mohammad of Chartviewindia.in.
Weakness will get confirmed only if the index registers a close below 11,539 level, the expert said.
