NEW DELHI: Nifty50 on Tuesday snapped a seven-day winning streak and formed a small bearish candle on the daily chart that resembled an indecisive Spinning Top. During the day, the index faced selling pressure near the 15,700 level, which is seen as immediate resistance for the index.
Analysts see rangebound movement ahead. They advised traders to buy into any index fall towards the immediate support of 15,370.
Independent analyst Manish Shah said the index may stay rangebound in the 15,470-15,660 over the next two days.
“The underlying trends in Nifty50 and Nifty Bank are bullish. Any positive statement post RBI meeting could be a trigger for a rally in Nifty50 towards 1,5775-15,800 levels,” he said. The RBI monitory policy committee will review the policy rate through June 2-4.
For the day, the index closed at 15,574, down 7.95 points or 0.05 per cent.
“Though the overall outlook is positive, the Nifty50 can witness a brief consolidation near 15,600-15,400 before heading higher. A dip towards 15,450-15,400 can be taken as a fresh buying opportunity. On the higher side, 15,700 and 16,000 will be the short-to-medium term targets to watch out for,” said Gaurav Ratnaparkhi of Sharekhan.
Chandan Taparia of Motilal Oswal Securities said the index will need to hold above 15,500 to witness an up move towards a fresh lifetime high of 15,750. On the downside, support exists at 15,431 and 15,300 zones, he said.
Mazhar Mohammad of Chartviewindia.in said his proprietory twin momentum oscillator has generated a sell signal after Tuesday’s price action. He expects Nifty to remain either sideways or initially move down towards 15,374 in the next couple of sessions.
“We advise traders to book profits in the index and remain cautious even on a stock-specific front,” he said adding that a critical short term support is placed at 15,374 level, which can act as a trend-deciding level,” the analyst said.
