Tech View: Nifty50 forms indecisive Spinning Top, but showing resilience

The 50-day exponential moving average (EMA) and 50-day simple moving average (SMA) of the index lay at 11,530 and 11,459 levels, respectively. Some analysts felt a fall below these levels could trigger sharp selling pressure.

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Mazhar Mohammad of Chartviewindia.in said it will be critical for Nifty50 to sustain and consolidate around its 50-day moving average in the next couple of sessions to prevent further damage.
NEW DELHI: Nifty50 on Friday defended the immediate hurdle in the 11,580-600 range after sharply falling below it in intraday trade. The index formed an indecisive Spinning Top candle on the daily chart and a bearish candle on the weekly chart.

Sacchitanand Uttekar of Tradebulls Securities said the index has continued to display resilience, as it rebounded in late trade despite global volatility.

“We expect the index to remain its oscillation mode in the 12,065-11,580 range,” he said.


The 50-day exponential moving average (EMA) and 50-day simple moving average (SMA) of the index lay at 11,530 and 11,459 levels, respectively. Some analysts felt a fall below these levels could trigger sharp selling pressure.

Check out the candlestick formations in the latest trading sessions
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Mazhar Mohammad of Chartviewindia.in said it will be critical for Nifty50 to sustain and consolidate around its 50-day moving average in the next couple of sessions to prevent further damage.
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“As of now, there seems to be critical support around the 11,500 level on the weekly chart, a close below which can significantly damage the medium-term trend, with initial targets placed around 11,000 level. Initial hurdle is placed around 11,750 level,” he said.

For the day, Nifty closed at 11,642, down 28.40 points or 0.24 per cent.
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Shrikant Chouhan of Kotak Securities said the benchmark has managed to hold the level of 50-day EMA. “In the Coming week, expect stock-specific activities as long as the index does not breach the trading range in the 11,750-11,530 range on either side,” he said.

Nagaraj Shetti of HDFC Securities said the index has formed a long bearish candle on the weekly chart, which was placed at the edge of significant trend line support at 11,600 level, as per change in polarity.
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“After the upside breakout of this trend line in the early part of October, Nifty50 failed to show any meaningful follow-through bounce later, as it moved in a broader sideways range with a weak bias. Hence, this pattern could signal a chance of Nifty showing further weakness next week, before it sees any meaningful bounce,” Shetti said.


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