NEW DELHI: Nifty50 tumbled over 250 points on Monday, but formed a Bullish Hammer candle on the daily scale, suggesting that intraday selling was bought into.
Analysts said it was testing of the 14,200 level that brought buying on Nifty50 at lows. This level has been offering strong support to the index for the past few weeks and will do so in the immediate future, they said.
Rohit Singre of LKP Securities said a strong base is still present in the 14,250-14,200 range and if the range is sustained, a reversal is likely in the coming sessions and that may take the NSE barometer towards the 14,450-14,550 range.
Independent analyst Manish Shah said the context and the location of Monday’s Hammer suggest that the buyers were active in the market.
“If Nifty50 moves above the resistance at 14,400 level, expect the market to move higher towards the 14,600-14,615 range. A crucial support stands at 14,250 level. A break below this level can be a bearish development and a signal of a possible drop to 13,900 level,” Shah said.
ETMarkets.comFor the day, Nifty closed at 14,359, down 258.40 points or 1.77 per cent.
Mazhar Mohammad of Chartviewindia.in said the index seems to be holding on to its 100-day simple moving average on a closing basis, whose value is placed around 14,330 level.
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ETMarkets.com“A close below 14,300 level can drag it down initially towards its logical target of 13,963 level. Considering the force with which the market was falling in recent days, a bigger target towards 13,600 level can’t be ruled out going forward,” he said.
Choice Broking said hourly momentum indicator Stochastic has bounced from the oversold zone with a positive crossover, which suggests strength. At present, Nifty has an immediate support at 14,150 level while it may face resistance around the 14,500 mark, the brokerage said.
