Independent analyst Manish Shah said the 11,400-11,360 zone is becoming a hurdle for Nifty and it needs to close above the gap, if it has to move higher.
NEW DELHI: Nifty50 on Friday reclaimed the 11,350 mark, but formed a bearish candle on the daily chart, as the index gave up some of the opening gains. The NSE barometer, which stayed above its five-day moving average for the session, now faces resistance in the 11,440-540 zone, analysts said. Support for the index is seen at 11,360 level, they said.
The positive trend of the index remains intact, but Nifty50 needs to surpass the recent swing high ahead of its August series F&O expiry to commence the next leg of rally, said Chandan Taparia of Motilal Oswal Securities. The index hit a swing high of 11,460 on Wednesday.
For the day, Bifty rose 59 points or 0.53 per cent to 11,371.
"Even on the weekly scale, the index has been respecting its five-week EMA for 12 consecutive weeks, which is now placed at 11,155 level. During this period, the index has not slipped below its 20-day EMA on the daily scale. The index continues to move higher by maintaining its bullish sequence of higher tops and bottoms. We expect it to retain this gradual up-move," Uttekar said.
Aditya Agarwala of YES Securities said a sustained trade above the 11,390-11,400 zone can extend the index gains to the 11,440-11,540 range, which is its gap resistance area. "If the bulls fail to push Nifty above 11,390 level, profit booking can drag it the 11,340-11,200 levels. The RSI on a shorter time frame chart has reached slightly overbought territory, which indicates that the uptrend may pause and cool off," he said.
On the weekly chart, the index formed a small bullish candle. It resembles a 'Spinning Top', said Mazhar Mohammad of Chartviewindia.in. "It looks critical for the bulls to sustain above 11,362 level at least to retain the bullish bias. A close below 11,290 level can damage the bullish sentiment, thereby dragging down Nifty towards its 20-day exponential moving average (EMA) placed at 11,200 level," he said.
Independent analyst Manish Shah said the 11,400-11,360 zone is becoming a hurdle for Nifty and it needs to close above the gap, if it has to move higher.
