Connect with us

Hi, what are you looking for?

Finance

Tech view: Nifty forms bearish candle amid selling pressure

NEW DELHI: The Nifty50 on Thursday tested the sub-10,800 lev..

NEW DELHI: The Nifty50 on Thursday tested the sub-10,800 level in intraday trade, only to settle above the psychological level by close.

The index, which had been failing to breach its key resistance levels, negated a higher high and higher low formation and ended up forming a small bearish candle on the daily chart.

The candle had no upper wick, suggesting the selling pressure that the index witnessed throughout the trading session.

But analysts see no major sign of bearishness.

“Though Nifty showed weakness from the highs in the past couple of sessions, the downside momentum has not picked up so far. The emergence of buying interest from the lows could encourage the bulls to put up some defence. Immediate supports to be watched in the short term are at 10,750-60 levels, as per the concept of change in polarity,” said Nagaraj Shetti of HDFC Securities.

A sustained trade above 10,880 with healthy volumes can help the index resume the uptrend and go to 11,100-11,280 levels, said Aditya Agarwala, Technical Analyst, YES Securities.

For the day, the index fell 48.65 points, or 0.45 per cent, to close at 10,808.

Momentum indicator Stochastic turned downward along with a negative crossover from the overbought zone, indicating possible profit booking around the resistance zone, said Rajesh Palviya, Head of Technical & Derivatives Analyst, Axis Securities.

Any follow-through buying in the next session may reinstate the bullish sentiment once again, whereas a close below 10,767 next session shall confirm the bearish formation, paving the way for a bigger correction, said Mazhar Mohammad of Chartviewindia.in.

On the weekly scale, the index has formed a small-bodied candle with bigger higher shadows, said Chandan Taparia of Motilal Oswal Securities. It has to hold above 10,770 to extend its move towards 10,888, the expert said.

Original Article

[contf]
[contfnew]

ET Markets

[contfnewc]
[contfnewc]

Finance

In an interview with ET Now, Dabur India Director Mohit Burm..

Science

The 147th Open championship will be at Carnoustie Golf Club in Scotland. Jan Kruger/R&A Golfers ..

Tech

Enlarge Oliver Morris/Getty Images) In response to an Ars re..

Tech

Enlarge/ You wouldn't really want to use Nvidia's ..