NEW DELHI: Thursday was the second straight session when the opening level proved the day's high for the Nifty. The index moved in a 50-point range during the session, suggesting the consolidation was in place around the all-time high level.
At close, the NSE barometer formed a 'Bearish Belt Hold' on the daily chart.
Sacchitanand Uttekar of Tradebulls believes the index may continue to consolidate on Friday. The 10,400 level will be a crucial support level for the index, Uttekar said.
Last two sessions' price behaviour is suggesting that the market is slowly slipping out of the clutches of the bulls, said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
In a 'Bearish Belt Hold' pattern, the day's opening level becomes the day's high for the index, while the index closes near the day's low. It indicates that the bears dominated the bulls throughout the session.
The index opened at 10,473.95, which later proved its day's high. The NSE benchmark fell to its day-low of 10,426.90, before closing the day at 10,429.30, down 14 points or 0.14 per cent at.
Mazhar said that if the index were to reclaim its strength back, it needs to conquer the top of 10,494 levels soon.
"Else bears may tighten their grip over the markets in the near term. Considering the impending weakness traders are advised to remain cautious and maintain tight stop below 10,400 on closing basis where as fresh positions should be considered only on a close above 10,494 levels," the expert said.
A hold above the 10,380 level is a must, said Chandan Taparia of Motilal Oswal Securities.
The index may face resistance at 10,495 and later at 10,550 level, the analyst said, adding that downside support for the index are at 10,330 level.
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