Daily price action resulted in a sizable bearish candle, giving rise to a lower high-low formation, indicating weakness ahead, said Rajesh Palviya of Axis Securities.
NEW DELHI: Weak global cues weighed on Nifty50 as the index breached its immediate support range at 9,950-9,920 and closed just above the 9,900 level on Thursday. The index fell below the 10,000 mark on a closing basis for the first time in six sessions, signalling a bearish bias.
Daily price action resulted in a sizable bearish candle, giving rise to a lower high-low formation, indicating weakness ahead, said Rajesh Palviya of Axis Securities.
"For the day, if Nifty trades and sustains below the 9,850 level, it may correct further in the 9,800-9,700 range. On the upside, the 9,980-10,050 range may act as key resistance. Daily strength indicator RSI and momentum indicator Stochastic are in bearish mode, indicating weakness in the short term,” Palviya said.
For the day, Nifty closed at 9,902, up 214 points or 2.12 per cent.
"The bears appear to be flexing muscles, as Nifty50 seemed to have seen a breakdown from its six-day-old congestion zone and formed a full-fledged bearish candle. As long as the index remains below the 10,112 level, it shall head to bridge the bullish gap area in the 9,706-9,598 zone registered on July 1," said Mazhar Mohammad of Chartviewindia.in.
Manish Hathiramani of Deen Dayal Investments said Nifty’s next support is placed at 9,850 where the market could take a breather. "On the upside, the market will need to go past the 10,150 level," he said.
The 8,800 level, said Aditya Agarwala of YES Securities, is the 20-day moving average for the index. “If Nifty sustains beyond this resistance line, short-covering rallies can take it to 9,040-9,140 zone,” the expert said.
