Tech View: Nifty below 11,000, but no shift in positive bias yet

NEW DELHI: Nifty50 piled up losses on Thursday and could not sustain above 11,000 level on a closing basis. Yet, analysts saw no evidence of any shift in the prevailing positive bias. They said the index is on course to form an inverted Head & Shoulder pattern. All eyes will be on the 11,141 level.

The immediate resistance for the index is seen in the 11,080-11,140 range, which should be surpassed soon, said Ruchit Jain of Angel Broking.

“If the index stabilises around the prevailing level and recoils without much price damage, there is a higher possibility of registering an inverted Head & Shoulders formation,” said Mazhar Mohammad of Chartviewindia.in.


“The current correction can develop into the right shoulder of said reversal pattern, which will be confirmed on a breakout above 11,142. It looks prudent for traders to remain neutral,” Mohammad said.

For the day, the index fell 97.80 points, or 0.89 per cent, to close at 10,948. It formed lower highs and lows for the second straight session and formed a bearish candle on the daily chart. It closed below its five-day and 20-day moving averages.

“Support for Nifty50 is intact in the 10,880-10,850 range. The index needs to breach and hold above 11,000 to witness any bounce towards 11,080 and 11,141 levels,” said Chandan Taparia of Motilal Oswal Securities.