Tech View: Nifty50 forms 'Doji' pattern; can touch 9,700 level

NEW DELHI: Dalal Street witnessed a rangebound session on Friday in which the Nifty50 hit a record high, before closing the session around the same level as on Thursday.

In the process, the index formed a small real body on the daily chart that looked exactly like a ‘Doji’ formation.

The chart pattern suggests indecisiveness among market participants at higher levels.

On the weekly chart, the index formed a bullish pattern. Analysts said one cannot write off the possibility of further gains on the index.



Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, said despite a gapup opening, the bulls failed to build on the opening thrust, suggesting lack of conviction or clarity on the part of bulls at higher levels.

“However, on a weekly basis the trading range remained quite decent with a small bullish candle formation. The benefit of doubt still goes to the bulls as confirmation for weakness is still missing despite weakening momentum. Still, it will be prudent on the part of traders not to develop any sort of complacency,” Mazhar said.

The Nifty50 saw a gapup opening. The index hit an all-time high of 9,673 during the day before retreating to 9,637 level in later trade. Eventually it closed the day at 9,653, up 37.40 points or 0.39 per cent

Chandan Taparia of Motilal Oswal Securities said, “The index formed a Doji candle on the daily chart as it closed near its opening level after moving in a small range. Now, it has to continue to hold above 9,635 to extend its upmove towards 9,700 while on the downside, the immediate support of 9,580 should hold the short-term positive trend of the market.

Mohammad advised investors to book profits if the Nifty50 hits 9,700 level.