Tech View: Nifty forms Bearish Belt Hold pattern; showing fatigue

The trend may become bullish, once it crosses above the 12,150 level.

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Any upside should remain capped at 12,160 level unless Nifty sees a strong breakout above that level
NEW DELHI: Nifty fell from the word go on Monday but settled the day a tad below 12,050, forming a Bearish Belt Hold pattern on the daily chart.

Notwithstanding weak breadth and visible signs of fatigue, a few analysts thought the broader trend remained intact, but the index may need to breach the 12,150-70 range for any strong action.

The hourly chart revealed that the price action over the last few sessions has resulted in a triangle formation, said Gaurav Ratnaparkhi of Sharekhan.


“The index on Monday found support near the lower end of the pattern and formed a base over there. It looks poised for a leap towards the upper end of the pattern, which is near the 12,100-12,110 zone,” he said.

“The trend may become bullish, once it crosses above the 12,150 level,” said Amit Shah of Indiabulls Ventures. “In such a case, Nifty can move swiftly to 12,400.”

For the day, the index closed at 12,048, down 7.85 points or 0.07 per cent. A critical support for index is placed around the 13-day exponential moving average (EMA), whose supporting value for the next session is placed around the 12,006 mark, said Mazhar Mohammad of Chartviewindia.in.
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“Any upside should remain capped at 12,160 level unless Nifty sees a strong breakout above that level,” he said.
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