Gaurav Ratnaparkhi of Sharekhan said Nifty seems to have stepped into a consolidation phase.
NEW DELHI: Nifty50 fell for the third straight day on Thursday, but managed to hold above its immediate support at 15,100-15,080. The 50-pack formed a bearish candle on the daily chart and continued to form lower highs and lows. Analysts ruled out any major correction in Nifty as long as it holds above 15,000 level.
“Although Nifty looked a bit tentative, it is nowhere close to seeing a trend reversal soon. The recent selloff needs to be construed as minor profit taking. In the coming session, one needs to watch the 15,050-15,000 zone. The first sign of weakness would emerge only if Nifty50 convincingly breaches the 15,000 mark. On the flipside, the 15,175-15,250 range is seen as immediate hurdle,” said Sameet Chavan of Angel Broking.
For the day, Nifty fell 89.95 points, or 0.59 per cent, to 15,118.
Check out the candlestick formations in the latest trading sessions “Selling may get accentuated if the bears manage to push Nifty below the 15,000 level on a closing basis. In that scenario, the initial support would be around 14,600 level. This support also coincides with the post-Budget bullish gap zone at 14,469-336. Hence, in case a corrective downswing unfolds, the realistic targets should be somewhere in the 14,600-300 zone,” said Mazhar Mohammad of Chartviewindia.in.
Independent analyst Manish Shah said in a trending market, it is normal for the index to decline for two-three days.
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“This was the third day and we are patient and hopeful that this is just a corrective decline in an ongoing uptrend. Nifty has now hit the T-Line, which is an eight-period moving average, and this line can act as a support. In the last three days, it has not seen a range expansion candle, and the decline has been on less than normal ranged candles. No urgency to sell is visible on the index. The weight of evidence indicates that we are in a corrective decline in an ongoing trend,” he said.
Gaurav Ratnaparkhi of Sharekhan said Nifty seems to have stepped into a consolidation phase. “The 15,000-15,430 zone will be the range for this consolidation. However, if the 15,000 level is breached on a closing basis, Nifty will be poised for a deeper correction,” he said.
