Tech View: Nifty forms Hanging Man on weekly chart; 11,800 a key hurdle

NEW DELHI: The Nifty50 breached a previous swing high of 11,761 on Friday and closed a tad below that level. While the index formed a bullish candle on the daily chart, it ended up forming a 'Hanging Man' pattern on the weekly chart.

The 11,800 level could act as a strong resistance, a break of which may push the index to a record high.

“Nifty is hovering near the crucial 11,760-11,800 zone and some followup buying could take it towards a new life-time high at 11,900. Support for the index is seen at 11,666,” said Chandan Taparia of Motilal Oswal Securities.


Nagaraj Shetti of HDFC Securities said Nifty trends remain positive and chances are that it may move towards the 10,850-870 range by next week.

For the day, the index closed 112.85 points, or 0.97 per cent, higher at 11,754. Nifty movement of last three sessions indicates a broader trading range with alternative bull and bear candle formations.

“Lack of follow through on the downside post Thursday’s fall suggests the market is in the consolidation range between 11,850 and 11,550 levels and it needs to break out of this range to see a directional move. Strength can be seen on any close above the 11,800 level. Traders are advised to remain on the sidelines,” said Mazhar Mohammad of Chartviewindia.in.

Jimeet Modi, Founder & CEO, SAMCO Securities, said the ongoing consolidation may continue as long as the index does not break above 11,900. “In order to protect the long positions, one needs to keep a stop loss below 11,500 on Nifty50,” he said.