NEW DELHI: Nifty50 snapped a two-day losing streak on Friday and formed a Bullish Harami Cross on the daily chart, suggesting a pause in the corrective move. On the weekly chart, the index formed a bearish candle and continued to form lower highs and lows. Analysts said multiple parameters on the weekly charts entered ‘sell’ mode, and further buying is required to instill confidence among traders.
Chandan Taparia of Motilal Oswal Securities said Friday’s Harami Cross pattern indicated the absence of direction in the market. “The index has to continue to climb and hold above 14,700 level to extend its move towards the 14,900 mark. The immediate support exists at 14,600 and 14500 levels,” Taparia said.
Mazhar Mohammad of Chartviewindia.in said despite the market rise, none of the key momentum oscillators he tracks turned into ‘buy’ mode on the daily charts. On the other hand, multiple technical parameters on the weekly charts turned into ‘sell’ mode, he said.
ETMarkets.com“The only solace for the bulls appears to be the fact that Nifty is consistently gaining support from its 13-week exponential moving average on the weekly charts, whose value for the next week is placed around 14,425 level. Hence, sustaining above this level on a weekly closing basis is critical for the bulls to avoid bigger cuts,” he said.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, said on the weekly chart Nifty has bounced back from the weekly 10-period
. The value of the moving average stands at 14,590 level and Nifty closed just below it. Check out the candlestick formations in the latest trading sessions
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“Previously, such downside violations of this EMA offered strong upside bounce in the subsequent weeks. Having recovered from the lows in last two weeks, the odds of further upside bounce could be alive in the market,” he said.
Aditya Agarwala of YES Securities said the Nifty movement suggests a pause in the corrective phase. A sustained trade above the 50 per cent Fibonacci retracement level placed at 14,570 would extend the short-covering rally to 14,650-14,760 levels. “On the downside, the 14,430-14,300 zone is key support now,” he said.
