Rajesh Palviya of Axis Securities said the index is facing resistance from its 20- and 50-day SMAs, which signal bearish sentiment.
NEW DELHI: Nifty50 on Thursday reclaimed the 9,100 level, but formed a bearish candle on the daily chart that resembled a 'Shooting Star' pattern. This, along with the fact that the index is facing strong resistance near 20- and 50-day moving averages, does not bode well for the bulls. Analysts said the 9,200 level would act as an immediate resistance for Nifty50.
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan, said the pullback in Nifty50, which had started from 8,806 level, has stretched higher with the expansion in the hourly Bollinger bands.
"On Thursday, the index attempted to stretch beyond the upper end of the rising channel on the hourly chart, but the bears duly restricted the subsequent up-move and pushed the index down. Thus, the Bearish Flag formation on the hourly chart remains valid. The index is now set to tumble towards the lower end of the pattern, which exists near the 9,000-8,970 zone," he said.
Rajesh Palviya of Axis Securities said the index is facing resistance from its 20- and 50-day SMAs, which signal bearish sentiment.
For the day, Nifty rose 39.70 points, or 0.44 per cent, to close at 9,106.
"The index gave up some of its gains due to profit booking and weekly expiry of Nifty and Bank Nifty options. The resistance for the index stands at 9,200 and support at 9,000 levels," said Manish Hathiramani, Index Trader and Technical Analyst at Deen Dayal Investments.
Mazhar Mohammad of Chartviewindia.in said Nifty needs to protect the 9,056 level. "In case it fails to do so, the index can come under intraday selling pressure, whereas a close below 9,000 level can slowly drag the index down towards the lower end of the 9,160–8,800 trading range," he said.
"A strong close above the 9,160 level can extend the upswing into the 9,281-350 zone," he said.
