Tech View: Indecisive Spinning Top in Nifty charts shows market directionless

NEW DELHI: Nifty50 on Friday formed an indecisive Spinning Top candle on the daily chart. On a weekly basis, it formed a long-legged Doji. The two charts suggest traders were clueless a week before of 7-phase general elections kick off.

“On the weekly chart, a long-legged Doji was formed while a mild bounce in Friday’s session depicted a ‘Spinning Top’ kind of formation. The charts suggest traders are clueless about further direction after positive closes in seven consecutive weeks. Going forward, the market is likely to consolidate with a negative bias,” said Mazhar Mohammad of Chartviewindia.in.

Nifty’s upside remains capped around 11,760 level for the time being, he said. For the day, it rose 67.95 points, or 0.59 per cent, to 11,665.


Chandan Taparia of Motilal Oswal Securities felt the index needs to hold above 11,600 to see any upward move towards 11,760 level, while major support exists at 11,550.

The near-term oscillators are in sell mode, but they are in buy mode on a medium-term basis, said Arun Kumar, Market Strategist at Reliance Securities.

“We expect the index to consolidate for a few sessions. The key support is around the 11,550 mark, while it could face some headwinds around the 11,745 level,” said Kumar.