NEW DELHI: Nifty50 on Friday saw selling pressure at higher levels. The index formed a Doji on both daily and weekly scales. It has been forming indecisive candles over the past three occasions on the weekly timeframe charts, with a lower high-low formation, which reflected weakness.
“When one looks at the bunch of candles of last eight sessions, it is apparent that Nifty is refusing to nudge lower. In the last eight sessions, the candles were in the red on two, and in the green for the remaining six. Nifty50’s immediate resistance is in the 14,525-14,550 zone, and a break above it can push it towards the 14,700-14,775 range. Support for Nifty is seen in the 14,190-14,180 range,” said Manish Shah, independent analyst.
Mazhar Mohammad of Chartviewindia.in said the 14,300 level is acting as a glue for the bulls on a closing basis, as all intraday dips below 14,300 level are getting bought into by the bulls.
ETMarkets.com“Moreover, the 62 per cent retracement of the entire last leg of the rally from the low point of 13,596 to a high of 15,431 is placed around the 14,296 mark. To add to that, the two-week exponential moving average lies around the 14,229 level, whereas the 100-day EMA stands around 14,172. All these points may be acting as a confluence of support zone in the 14,300-14,150 range. A dip into this zone can be an opportunity to play for a trading bounce with an initial target of 14,526,” Mohammad said.
Check out the candlestick formations in the latest trading sessions
ETMarkets.comRohit Singre of said Nifty50 has created a good base near the 14,250-14,200 range. “As long as these levels hold up, the structure will remain positive. A stiff hurdle lies in the 14,450-14,500 zone. The index may find fresh strength only above the 14,500 level,” he said.
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