NEW DELHI: Nifty on Monday formed a small bearish candle on the daily chart with a long upper wick, suggesting selling at higher levels. Analysts said relatively longer upper shadows in last three sessions, with small and negligible candle bodies may be hinting at impending weakness, which may get confirmed with a close below the 14,862 level. On the upside, Monday’s high of 15,111 would not pose a near-term hurdle for the index, they said.
“On any slip below 14,862 level, the weakness would accentuate with an initial target of 14,628 level. If the bulls manage to defend the 14,900 level on a closing basis, they will continue to attempt to breach its near-term critical hurdle at 15,273 level,” said Mazhar Mohammad of Chartviewindia.in.
For the day, Nifty closed at 14,956 level, up 18.10 points or 0.12 per cent. During the day, the index opened above the 15,000 level and breached the 15,100 mark, before closing just above 14,950.
“After a gapup opening, Nifty broke out of a Bullish Wedge pattern on the hourly chart. However, it couldn’t sustain above the 20-hour moving average. As a result, it witnessed consolidation for yet another session,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
He said the index has broken out of the falling trendline and is forming a base above it.
“On the higher side, Monday’s high of 15,111 level becomes a key hurdle. Once that level is taken out, Nifty will be considered to have started a fresh move on the upside. On the downside, a crucial support is present near the 14,860-14,800 zone,” Ratnaparkhi said.
Independent analyst Manish Shah said Nifty is in a limbo, as the market has not shown a clear direction in last many days.
“Monday’s was a session with the narrowest range on last five bars. Volatility is cyclical and cannot be perpetual. Nifty needs to move above the 15,150 mark if the rally has to continue. Probabilities favour an upmove, as the pattern of higher highs and lows remains intact and the trend has higher probability of continuation rather than reversing. Immediate support for Nifty stands at 14,860 level,” he said.
