Tech View: Nifty forms bullish candle, faces resistance in 11,970-12,040 range

NSE Nifty on Thursday hit a record closing high to end May series F&O contracts at 11,945.90. The index formed a bullish candle on the daily charts, with a negligible lower wick. Such a pattern after two days of indecisive candles instilled hopes of a recovery ahead.

That said, the 11,970-12,040 zone continues to pose a hurdle. Support was seen in the 11,810-830 range.

For the day, Nifty rose 84.80 points, or 0.71 per cent.

“Nifty needs to sustain above the 11,970 level for extension of the upmove towards 12,150-12,250. A failure to sustain beyond the level would lead to profit booking, dragging it lower to levels of 11,810-11,660.” said Aditya Agarwala, Senior Manager, Technical Analysis at YES Securities.

Gaurav Ratnaparkhi of Sharekhan said the index continued with the distribution near the 78.6 per cent retracement mark near 11,950.

“The hourly chart shows that the distribution can go on for some more time before the index finally prepares for the southward journey. On the higher side, 12,000-12,041 is a crucial hurdle zone for the index. The swing low of 11,836.80 shall now act as a key support,” he said.

Nifty has been consolidating in the 11,800-11,970 zone from the last four trading session and needs a decisive breakout, said Chandan Taparia of Motilal Oswal Securities.

If Thursdays strength was entirely F&Read More – Source