Nifty is still trading above 20- and 50-day SMAs, said Rajesh Palviya of Axis Securities.
NEW DELHI: Nifty bulls, which were showing signs of tiredness on Wednesday itself, finally lost ground to the bears on Thursday after a six-day rally. The 50-pack index fell below its 100-day exponential moving average and formed a Doji candle on the daily chart, suggesting indecisiveness among traders.
This was the first time in seven sessions that the index made a lower high-low formation, reflecting a pause in momentum. That pause was further reflected in the Relative Strength Indicator (RSI), which has turned southward from the overbought territory. It suggests a temporary halt to the rising trend, said Aditya Agarwala, Senior Technical Analyst at YES Securities.
He said the index continues to face stiff resistance in the gap area of 10,160-10,290 and a sustained trade below 9,950 level would trigger profit booking and take Nifty towards the 9,800-9,700 zone.
For the day, Nifty closed at 10,029, down 32.45 points, or 0.32 per cent.
“In case the bears fail to push the index decisively below the psychological support at 10,000 level on a closing basis, it may turn rangebound. However, a close below 10,000 level shall strengthen bearish sentiment and initially drag Nifty towards the 9,700 level,” said Mazhar Mohammad, Chief Strategist at Chartviewindia.in.
Nifty is still trading above 20- and 50-day SMAs, said Rajesh Palviya of Axis Securities. “It is expected to remain in an uptrend to sideways zone until it breaks the 9,800 level on the downside" Palviya said.
Manish Hathiramani, Technical Analyst at Deen Dayal Investments, sees Nifty's short-term resistance at 10,100 and support at 9,950.
