Tech View: Nifty stages recovery, eyes a decisive break above the 11,150 level

NEW DELHI: Nifty50 snapped a two-day losing streak on Wednesday to settle above the 11,100 mark. During the day, it embarked on a recovery from sub-11,000 level, showing initial signs of strength.

Nifty’s advance-decline ratio remained strong at 37:13, but the index formed a lower highs and lows, signalling lack of conviction. Analysts said the intraday recovery was encouraging, but not necessarily a sign of trend reversal. The 11,150 level will be key for Nifty’s next upmove.

The index is still trading below its 200-day moving average and, thus, traders are advised to refrain from creating long positions, unless the index shows signs of strength on the momentum oscillators, said Mazhar Mohammad of Chartviewindia.in.


A sustained trade above 11,150, which happens to be the meeting point of cluster of resistances, can trigger more short-covering rallies and take Nifty to 11,210-11,290 levels, said Aditya Agarwala, Senior Manager, Technical Analysis at YES Securities.

A failure to sustain above 11,150 level can resume the correction and take Nifty to 11,050-11,000 levels, Agarwala said.

For the day, the index closed at 11,118, up 32.60 points or 0.29 per cent. The index formed a small bullish candle on the daily chart.

“The index has immediate resistance near its 200-DMA at 11,150. If it manages to sustain above the said level, it can see some a smooth move towards the 11,220-11,300 range. Support for the index exists near the 11,060-11,000 zone,” said Rohit Singre of LKP Securities.