Profit booking at higher levels dragged the Nifty50 index of NSE 0.39 per cent down to 10,490 on Wednesday. Before settling 40 points lower, the index opened at 10,531 and touched a new record high of 10,552.
During the process, a black body occurred on the candles. However, it does not make any significant formation on the daily charts.
The market is likely to remain volatile ahead of F&O expiry on Thursday.
The index formed a black candle on the charts as it closed lower than the opening level.
Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory said, "The market remained susceptible to profit taking at high levels. The Nifty50 also failed to confirm the upward breakout that it attempted on Tuesday. Going into Thursday's trade, it will be critical to watch market behaviour at the 10,490 level. Any slip below this level will force the market into more corrective consolidation."
Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory, Chartviewindia.in, said: "As our twin momentum oscillators generated a sell signal, a correction should ideally get extended to the next few sessions unless the Nifty50 recovers and closes above the 10,550 level. On the downside, initial supports should be available close to the 10,400 level, whereas upsides, if any, shall continue to be capped around the 10,600-650 levels. As risk-reward ratios are not in favour of the bulls, traders are advised to remain in cash levels and avoid buying initial dip without signs of strength."
The volatility index on the National Stock Exchange, or India VIX, moved up 3.65 per cent to 12.49.
On the options front, maximum Put open interest (OI) stood at strike price 10,000 followed by 10,400, while maximum Call OI was at 10,600 followed by 10,500.
Chandan Taparia, Derivatives and Technical Analyst, Motilal Oswal Financial Services, said: "We have seen put unwinding at all immediate strike prices, while significant Call writing was s seen at strike prices 10,550 and 10,600. The option band signifies a broader trading band between 10,400 and 10,600 levels for the next sessions."
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The post Tech view: Nifty50 forms black candle; indicators not backing bulls appeared first on News Wire Now.
