NEW DELHI: Nifty50 on Thursday closed almost where it had opened earlier in the day, thus forming an indecisive Doji candle on the daily chart. The index stayed above the key short-term moving averages, but weakness at a key resistance point made analysts believe any upside for the index may be capped for now.
The bears appear to be gaining an upper hand with their counter-attacks at higher levels, as the bulls were forced to retreat after a breakout, which otherwise appeared be decisive at a high of 14,984, before selling pressure set in, said Mazhar Mohammad of Chartviewindia.in.
“This kind of behaviour on the part of the bulls is only adding to uncertainty about rallies,” the analyst said.
Nifty50 closed the day at 14,873, up 54.75 points or 0.37 per cent. Since March 16, the index has failed to close above the 14,900 mark.
ETMarkets.com“Today, we managed to conquer it at the opening. But we were a bit skeptical of this bounce and did not get carried away by this. But at the stroke of the penultimate hour, Nifty50 divided towards 14,800 level, before anyone could realise. Fortunately, the fall was restricted around the psychological mark and we had a modest recovery in the last few minutes of trade,” said Sameet Chavan of Angel Broking. Check out the candlestick formations in the latest trading sessions
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Chavan said the 14,900-15,000 range remains a key resistance zone. As long as Nifty50 traders do not have a convincing close above it, they should avoid aggressive bets.
“Nifty50 closed above the 50-day moving average and also the 20-day moving average. If we draw a down trendline from February highs, Nifty has hit the falling trendline. Nifty50 needs to show a strong green candle to negate the negative development created by the Doji at the falling trendline. If it does not, Nifty50 could drop towards 14,500 level,” said independent analyst Manish Shah.
