NEW DELHI: Nifty50 on Wednesday ended flat after trading in the negative zone for the most part of the session. The index ended up forming a small bullish candle on the daily chart, with a long lower wick, suggesting the bulls were not ready to give in easily. Analysts said the broader trend remains bullish, notwithstanding the intermediate sideways movement.
Aditya Agarwala of YES Securities said Nifty50 recovered from the first a line of support at 15,450 level.
“That said, it has entered a narrow consolidation phase following the relentless rally in May, with the immediate resistance placed at 15,600 level. A sustained trade beyond this hurdle will resume an upward move towards the 15,710-15,780 zone. If it fails to do so, the immediate support will be placed in the 15,450-15,430 zone,” he said.
For the day, the index closed at 15,576, up 1.35 points or 0.01 per cent.
“Since the recent Nifty50 rally began, it has only seen declines lasting for around 140-150 points. The decline since Tuesday’s high was only 156 points. If we draw a trendline connecting lows from April 14 and April 20, Nifty hit this line and reversed. The index is in a sharp uptrend. We are looking at the 15,775-15,800 zone, once it trades above 15,660 level,” said independent analyst Manish Shah.
Gaurav Ratnaparkhi of Sharekhan said the index has formed a Hammer on the hourly chart in the second half of the session before bouncing sharply towards the end.
“This bounce is unlikely to develop into a larger structure on the upside and is a part of the consolidation that started on June 1. The 15,600-15,400 zone is expected to be the range for the consolidation. Overall, the short to medium term targets on the upside are seen at 15,700 and 16,000 levels,” Ratnaparkhi said.
Mazhar Mohammad of Chartviewindia.in believes the index may remain sideways in the 15,650-400 zone, until Nifty50 registers a close above 15,660 level.
