Tech View: Nifty forms bearish candle as bulls fail to capitalise on breakout
NSE Nifty's recent pullback structurally looked completed at the swing high of 11,911.
By Amit Mudgill, ETMarkets.com |
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NEW DELHI: NSE Nifty on Friday faced selling pressure and ended up forming a small bearish candle on the daily chart and an indecisive ‘Spinning Top’ on the weekly chart. Analysts said that the bulls failed to capitalise on the recent breakout on the short-term charts and the index needs to break 11,691-11,911 range to show any directional move.
“If the weakness persists, the index may test its critical supports placed around 50-day EMA of 11,691. This is the same level from where the index bounced back on a couple of occasions in the recent past. Hence, a breach of the said average on a closing basis can accentuate selling pressure further with initial targets placed at 11,625. The upside will be capped around 11,911 level,” said Mazhar Mohammad of Chartviewindia.in.
For the day, the index closed at 11,788.85, down 52.70 points, or 0.45 per cent.
Gaurav Ratnaparkhi of Sharekhan said the recent pullback structurally looked completed at the swing high of 11,911.
“Hereon the index is expected to form another leg on the downside. Traders are recommended to look for selling opportunities in the market. One can create a sell position with reversal above the swing high of 11,911. On the downside, the June low of 11,625 will be the initial target with the subsequent target at 11,500,” he said.
The near-term indicators displayed mixed signals. The index needs to decisively close outside the range of 11,625 to 11,900 for a directional clarity, said Arun Kumar at Reliance Securities.
“If the weakness persists, the index may test its critical supports placed around 50-day EMA of 11,691. This is the same level from where the index bounced back on a couple of occasions in the recent past. Hence, a breach of the said average on a closing basis can accentuate selling pressure further with initial targets placed at 11,625. The upside will be capped around 11,911 level,” said Mazhar Mohammad of Chartviewindia.in.
For the day, the index closed at 11,788.85, down 52.70 points, or 0.45 per cent.
Gaurav Ratnaparkhi of Sharekhan said the recent pullback structurally looked completed at the swing high of 11,911.
“Hereon the index is expected to form another leg on the downside. Traders are recommended to look for selling opportunities in the market. One can create a sell position with reversal above the swing high of 11,911. On the downside, the June low of 11,625 will be the initial target with the subsequent target at 11,500,” he said.
The near-term indicators displayed mixed signals. The index needs to decisively close outside the range of 11,625 to 11,900 for a directional clarity, said Arun Kumar at Reliance Securities.
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