NEW DELHI: Nifty50 on Friday formed an indecisive Doji candle on the daily chart. On the weekly scale, the index formed a Hammer candle. Analysts said the 14,700 level may pose strong resistance for Nifty50 in the coming days. A fall below 14,250 level on the index can trigger a strong correction, they said.
Chandan Taparia of Motilal Oswal Securities said a ‘Hammer’ on weekly scale is indicating that declines are being bought into, but followup buying was missing at higher levels.
“Nifty needs to keep holding above the 14,500 level for a bounce towards 14,700 and 14850 levels. On the downside, supports for the index exist at 14,350 and 14,250 levels, respectively,” he said.
For the day, Nifty closed at 14,617, up 36.40 points or 0.25 per cent.
ETMarkets.comMazhar Mohammad of Chartviewindia.in said Friday’s selling occurred from an intraday high of 14,697 after the index retraced 62 per cent of its last leg of fall from the highs of 14,984-248 levels.
“This is clearly suggesting that Nifty is still caught up in a sideways phase and is in need of a breakout above 14,700 level to develop fresh impetus. As long as Nifty fails to sustain above the said bearish gap zone, the threat of revisiting the recent low at 14,250 level remains higher,” he said.
Check out the candlestick formations in the latest trading sessions
Rohit Singre of
said the index has a strong resistance at 14,700 level, which will be an immediate hurdle in the coming week. “Supports are placed in the 14,500-14,400 zone. If Nifty50 manages to hold above the said levels, we may see positive move in the coming sessions,” Singre said.
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