Tech View: Nifty50 forms Bullish Harami candle, hints at possible trend reversal

NEW DELHI: Nifty50 rebounded on Wednesday and topped the 11,000 mark in a style. The index formed a Bullish Harami candle and an Inside Bar on the daily chart, which suggest a possible trend reversal is on the cards. The 11,078 level will be keenly followed, analysts said.

A ‘Bullish Harami’ candle pattern is considered a bullish reversal candle by nature, said Rohit Singre of LKP Securities. “If the index manages to hold above 11,080, it may move towards the 11,140-11,200 range. Support for the index is seen in the 10,930-10,850 range,” he said.

For the day, the index closed at 11,029, up 103 points or 0.95 per cent.


“For last 27 sessions, the index appears to be moving in a well-defined down-sloping channel with multiple touch points and, thus, a close above 11,078 should hint at strength in the index. For this sideways phase to continue with a positive bias, Nifty50 should sustain above 10,900,” said Mazhar Mohammad of Chartviewindia.in.

Mohammad said a strong comeback by the index, without violating the preceding session’s low, is a sign that Tuesday’s big selloff was triggered by global factors.

“The overall structure for Nifty remains range-bound with support at 10,950. It requires a decisive close above 11,111 for its recent upmove to sustain,” said Chandan Taparia of Motilal Oswal Securities.